Research Objectives Benefits of Research
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a. General nature or type of company Working capital of a companys services will be relatively lower
when compared with working capital requirements of the company it self, due to service company does not require a large investment in cash,
receivables and inventories. b. The time required to produce or obtain goods and the cost of production
per unit or price of the goods Working capital needs of a company is directly related to the time
required to acquire the goods that will be sold as well as the basic material to be produced until the goods are sold. The longer the time required to
manufacture or acquire such goods, the greater the working capital needed. Terms of the purchase of materials or merchandise Terms of the
purchase of merchandise or raw materials that will be used to produce goods greatly affect the working capital required by the company. If credit
terms are accepted at time of purchase benefits, so little cash that must be invested in the stock of materials or merchandise or otherwise.
c. Terms of sale The more soft loans to buyers of the company will lead to the large
amount of working capital invested in the sector accounts. d. Inventory turnover rate
Inventory turnover rate indicates how many times inventory is replaced in the sense that bought and resold. The higher of inventory
turnover rate is the amount of working capital required lower and will
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minimize the risk of loss due to the decline in prices or changes in consumer taste, but it will save the cost of storage and maintenance of the
supplies.