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Is there a link between working capital requirements and the activity sector?

Accounting Auditing Financial Accounting Financial Management Finance
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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2017/04/30
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Amitha Albuquerque
by Amitha Albuquerque , FINANCE MANAGER , Summit Steel M E FZE

Hi, 

Yes, there is definitely a link between the nature of business of a company and its working capital requirements. 

For instance, a trading company's working capital needs will be different from that of a service provider company. 

 

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