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At what condition does working capital carry out the security function?

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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2017/04/23
Harikumar Ganesan
by Harikumar Ganesan , Finance Manager , Triver Integrated Services

Working capital shows liquidity position of the company. ie whether the company is able to meet its short term obligation. So liquidity plays an important role in the management performance of the company.Suppose the firm is not able to make the payment if will affect the business performance and profitability. Company has to arrange funds from long term sources to service the working capital level.

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