Select a company of your choice and research the working capital of that company (i.e. GE Capital, Wal-Mart, Apple, Google, Yahoo, IBM, Boeing, Target …etc) and explain their working capital strategy...

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Select a company of your choice and research the working capital of that company (i.e. GE Capital, Wal-Mart, Apple, Google, Yahoo, IBM, Boeing, Target …etc) and explain their working capital strategy based on your findings.

Answered 8 days AfterSep 03, 2022

Answer To: Select a company of your choice and research the working capital of that company (i.e. GE Capital,...

Prince answered on Sep 12 2022
55 Votes
Introduction:
Operating capital is another name for working capital. Ganesan (2007) proposes the following formal definition for the term: "The working capital fulfills the short-term cash obligations of a
business firm." It shows whether a corporation has the liquid assets necessary to meet its day-to-day obligations. It is generally accepted that the greater the operating capital accessible, the simpler it will be for the business to conduct its regular commercial operations. Ganesan (2007).
Working Capital Formula: The formula for determining an organization's working capital is as follows: Working Capital = Total Current Assets - Total Current Liabilities This statement, when taken literally, informs about the amount of assets the company has available above and beyond its short-term liabilities to meet its essential daily operational needs.
Applications
Knowing the company's working capital ratio is important for assessing its short-term financial health and operational effectiveness (Rasheed, 2012). The working capital could be positively or negatively, which indicates that when it is positive, the firm has had enough fluid assets to cover its needs. When it is negative, however, the company must carefully manage its assets in order to cover its needs without any trouble.
Many investors and management use this ratio because it provides an overview of the company's short-term health (Janeczko, 2017). Investors look to this financial calculation to gain insight into the company's resilience in the face of adversity. While managers are better able to foresee or hypothesise about potential difficulties with everyday requirements and respond to those needs accordingly. Therefore, it is important for the company to keep an eye on their performance since it can help them decide what managerial choices should be made to increase liquidity and keep them out of circumstances where they run the risk of losing money.
In this paper, working capital of at Samsung will be analyzed. The overall goal of this study was to emphasise the need...
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