Business & Finance Homework Help| Business & Finance homework help
The firm’s working capital policy over the ten-year period has been one of conservatism; with an emphasis placed on reducing short-term liabilities in order to maintain liquidity. By carefully managing credit policies, the firm was able to minimize potential losses and still allow them access to funds when necessary.
Furthermore the team also focused on improving their inventory turnover rates & optimizing accounts receivable collections when possible thus ensuring maximum efficiency from a cash flow standpoint. This allowed the entity to decrease its dependence on external finance while still maintaining sufficient working capital.
As for characterizing the firm’s capital, it can be said that such approaches have allowed them effectively manage their resources during times of both growth & contraction thus demonstrating their ability to remain profitable even under varying market conditions going forward.