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 Working capital means the funds (i.e.; capital)

available and used for day to day operations (i.e.;
working) of an enterprise.
 Working capital typically means the firm’s holding of
current or short-term assets such as cash, receivables,
inventory and marketable securities.
 These items are also referred to as circulating capital
Concept of Working Capital
 The concept of Working Capital includes Current
Assets and Current Liabilities. There are two concepts
of Working Capital which are
 Gross Working Capital
 Net Working Capital
Gross Working Capital

 Gross Working Capital refers to the firm'sinvestment

in Current Assets. Current Assets are the assets, which
canbe converted into cash within an accounting year or
operating cycle. Itincludes cash, short-term securities,
debtors (account receivables orbook debts), bills
receivables and stock (inventory).
Net Working Capital

 Net Working Capital refers to the difference between

Current Assets and Current Liabilities are those claims
of outsiders, which are expected to mature for
payment within an accounting year. It includes
creditors or accounts payables, bills payables and
outstanding expenses. Net Working Capital can be
positive or negative
 In looking at the effect of working capital on business
profitability, some of the questions easily come to
mind are..
 what are root causes of working capital on business?
 what are the major effects on accounts receivable ?
 what steps should be taken to ensure that it effect on
the profit of the firm will not be negative?
 how can working capital be managed/
 what make up the working capital cycle?
 how can debtors be controlled
 The main objective of the study is to determine the
effect of working capital on business profitability
which has to do with…...................................
 Maintenance of working capital at appropriate level,
 Availability of ample funds as and when they are
 Working capital effect the company goodwill
 Working capital effect the environment of security,
confidence, and overall efficiency in a business.
 This effect will be positive or negative and will be
proved when the research complete.
Company name
The data use for study coverd a period of 2004 to 2012
1 = ATCOP is a govt. sector organization which has no serious problem like
2= ATCOP is using procedure of marketing process to requirements of its
different goals
3 = Segment your market ( ATCOP easily understand the problem that your
market faces.
1= ATCOP has to log positioning procedure which make positioning more
2= Use of new idea and technique for devloping a marketing process is
difficult for manager
3 = Poor document the size of market, and no identify its major competitors