The three primary factors that determine how much working capital is needed by a small business are business type, operating cycle, and management goals.

as well as the cash conversion cycle (CCC), help assess operational efficiency and liquidity. Differentiating between permanent, temporary, and reserve working capital helps companies adapt to ...

Take, for example, the software-as-a-service (SaaS) industry. Though admired by investors for its low marginal costs, network effects and customer switching costs, a key ingredient in the sector’s ...