Title: Working Capital Investment - Capital Investment
Headings: Working Capital Investment
Working Capital Investment
Current Assets – Current Liabilities = Working Capital Investment
Working Capital Investment Requirements
Working Capital Investment Management
Working Capital Investment and Over-Capitalization

Content: Working Capital Investment Management
Working capital investment management is crucial to make sure that the organization has sufficient funds for carrying out its everyday operations in a smooth manner. Any business shouldn’t have a quiet a long cycle for cash conversion. Cash conversion cycle assesses the period of time for which an organization would be divested of funds in the case it raises its investments, as a procedure of its strategies for business growth. The organization needs to take some steps for the same, like reducing the customers credit period, talking terms with suppliers and raising the their period of credit with the suppliers, preserving the apt inventory level that lessens the costs of raw materials and right cash management that would ensure reduced cash holding prices. If an organization follows these measures, then the working capital investment requirement would come down automatically. There are some other things as well which one needs to consider in relation to working capital investment requirements. If an organization’s current liabilities are more than its current assets, then it shows a deficiency in the working capital investment and might lead sometimes to a business related debt. A shortfall in working capital investment has a damaging impact on the image of an organization it shows that the firm is facing liquidity problems and is unable to pay for costs related to short term periods. In this instance, the investors might pull out of making investments of any kind in the firm. Hence, financial planning, which includes planning of working capital investment requirement is very important for running a business expeditiously.