FINANCIAL ANALYSIS THE WORKING CAPITAL

The registration technique is a very useful statistical technique of working capital forecasting. In the sphere of working capital management, it helps in making projection after establishing the average relationship in the past years between sales and working capital (current assets) and its various components. The Analysis can be carried out through the graphic portrayals (scatter diagrams) or through mathematical formula. This method with the range of technique suitable for simple as well as complex situations is an undisputed refinement; it's a traditional approach of forecasting and determining working capital requirements and is particularly suitable for long-term forecasting.