Minimize Stock and Reduce Cash/ Bank Balance...!!!
Working Capital = Current Assets - Current Liabilities
Current Assets = Stock, Unfinished Goods, Cash / Bank Balances, Outstanding Claims etc.. (What you OWN)
Current Liability = Payment due to Sub Contractor, Vendor balances, etc.. (What you OWE)
A negative Working Capital is a healthy sign in any Construction Project, that is in Simple Terms "Work with others MONEY...!!!"
Its very simple said than done...
Current Assets = Stock, Unfinished Goods, Cash / Bank Balances, Outstanding Claims etc.. (What you OWN)
Current Liability = Payment due to Sub Contractor, Vendor balances, etc.. (What you OWE)
A negative Working Capital is a healthy sign in any Construction Project, that is in Simple Terms "Work with others MONEY...!!!"
Its very simple said than done...
A Good Procurement Plan and Fund Management Plan could aids in Timely Procurement & Utilization of Materials as well as Funds thus reducing Working Capital...!!!
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Informative article, great effor, keep ontinue.
ReplyDeletePMP Chennai