Thankyou ..i got the concept of financing problems due to overtrading ..i just dont understand what is too low WC and too high WC ? Is it simply this that .. REC. + INV – PAYB = 500 (this is high) REC + INV – PAYB = 100 (this is low)? Or some other concept is there like based on cash availability.. less the cash available to finance daily operations ..lower the WC level and vice versa ?