COURSES
MBAData Science & AnalyticsDoctorate Software & Tech AI | ML MarketingManagement
Professional Certificate Programme in HR Management and AnalyticsPost Graduate Certificate in Product ManagementExecutive Post Graduate Program in Healthcare ManagementExecutive PG Programme in Human Resource ManagementMBA in International Finance (integrated with ACCA, UK)Global Master Certificate in Integrated Supply Chain ManagementAdvanced General Management ProgramManagement EssentialsLeadership and Management in New Age BusinessProduct Management Online Certificate ProgramStrategic Human Resources Leadership Cornell Certificate ProgramHuman Resources Management Certificate Program for Indian ExecutivesGlobal Professional Certificate in Effective Leadership and ManagementCSM® Certification TrainingCSPO® Certification TrainingLeading SAFe® 5.1 Training (SAFe® Agilist Certification)SAFe® 5.1 POPM CertificationSAFe® 5.1 Scrum Master Certification (SSM)Implementing SAFe® 5.1 with SPC CertificationSAFe® 5 Release Train Engineer (RTE) CertificationPMP® Certification TrainingPRINCE2® Foundation and Practitioner Certification
Law
Job Linked
Bootcamps
Study Abroad
MS in Data AnalyticsMS in Project ManagementMS in Information TechnologyMasters Degree in Data Analytics and VisualizationMasters Degree in Artificial IntelligenceMBS in Entrepreneurship and MarketingMSc in Data AnalyticsMS in Data AnalyticsMS in Computer ScienceMaster of Science in Business AnalyticsMaster of Business Administration MS in Data ScienceMS in Information TechnologyMaster of Business AdministrationMS in Applied Data ScienceMaster of Business AdministrationMS in Information Technology and Administrative Management MS in Computer Science Master of Business Administration Master of Business Administration-90 ECTSMSc International Business ManagementMS Data Science Master of Business Administration MSc Business Intelligence and Data ScienceMS Data Analytics MS in Management Information SystemsMSc International Business and ManagementMS Engineering ManagementMS in Machine Learning EngineeringMS in Engineering ManagementMSc Data EngineeringMSc Artificial Intelligence EngineeringMPS in InformaticsMPS in Applied Machine IntelligenceMS in Project ManagementMPS in AnalyticsMS in Project ManagementMS in Organizational LeadershipMPS in Analytics - NEU CanadaMBA with specializationMPS in Informatics - NEU Canada Master in Business AdministrationMS in Digital Marketing and MediaMSc Sustainable Tourism and Event ManagementMSc in Circular Economy and Sustainable InnovationMSc in Impact Finance and Fintech ManagementMS Computer ScienceMBA in Technology, Innovation and EntrepreneurshipMSc Data Science with Work PlacementMSc Global Business Management with Work Placement MBA with Work PlacementMS in Robotics and Autonomous SystemsMS in Civil EngineeringMS in Internet of ThingsMSc International Logistics and Supply Chain ManagementMBA- Business InformaticsMSc International ManagementMBA in Strategic Data Driven ManagementMSc Digital MarketingMBA Business and MarketingMSc in Sustainable Global Supply Chain ManagementMSc Digital Business Analytics MSc in International HospitalityMSc Luxury and Innovation ManagementMaster of Business Administration-International Business ManagementMS in Computer EngineeringMS in Industrial and Systems EngineeringMSc MarketingMSc Global Supply Chain ManagementMS in Information Systems and Technology with Business Intelligence and Analytics ConcentrationMSc Corporate FinanceMSc Data Analytics for BusinessMaster of Business AdministrationMaster of Business AdministrationMaster of Business AdministrationMSc in International FinanceMaster of Business AdministrationBachelor of BusinessBachelor of Business AnalyticsBachelor of Information TechnologyMaster of Business AdministrationMBA Business AnalyticsMSc in Marketing Analytics and Data IntelligenceMS Biotechnology Management and EntrepreneurshipMSc in Luxury and Fashion ManagementMaster of Business Administration (90 ECTS)Bachelor of Business Administration (180 ECTS)B.Sc. Computer Science (180 ECTS) MSc in International Corporate Finance MSc in Sustainable Luxury and Creative IndustriesMSc Digital MarketingMSc Global Supply Chain Management (PGMP)MSc Marketing (PGMP)MSc Corporate Finance (PGMP)MSc Data Analytics for Business (PGMP)MS Business AnalyticsMaster of Business AdministrationMS Quantitative FinanceMS Fintech ManagementMS Business Analytics PGMPState University of New York Bachelors Program - STEM MSc Business Intelligence and Data Science (PGMP)MSc International Logistics and Supply Chain Management ( PGMP)MSc International Management (PGMP)MSc Psychology & Management (PGMP)State University of New York Bachelor's Year 1 ProgramMaster of Health Services AdministrationM.A Digital Marketing (PGMP)MS in Technology Leadership and Project ManagementMaster of Health Services Administration and Master of Business Administration (Dual Degree)MSc in Supply Chain ManagementMSc in Hospitality ManagementMaster of Business Administration 60 ECTS UAMMaster of Business Administration 90 ECTSMaster of Computer Science 90 ECTSM.Engg Industrial Engineering 90 ECTSM.A in Management 90 ECTSMS in Data AnalyticsMS in Artificial IntelligenceMaster of Business AdministrationMA International Business & LeadershipMaster of Business Administration 90 ECTS
For College Students
  • Home
  • Learn
  • Drivers of Operating Working Capital in Financial Analysis

Drivers of Operating Working Capital in Financial Analysis

$$/$$

Now that you have understood the impact of working capital due to changes in business scenarios, let’s learn about the drivers to maintain low working capital for bringing efficiency in the day-to-day operations.

$$/$$

In the video, you learnt about various drivers of the operating working capital.

 

Driver

Impact on Operating Working Capital

Technology

  • A faster production process results in lower inventory-holding cost

Effectiveness

  • Timely payment reminders to customers result in lower accounts receivables

Payment Habits

  • Long payment terms granted to customers may result in a higher operating working capital requirement 

Sales Revenue

  • Increase in sales revenue results in a higher working capital requirement

 

$$/$$

In the next segment, you will learn about inventory management.