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Hello Sir,
How we give a clear distinction between working capital investment and funding.
As both of them are important for understanding the long term and short term mixture of the funding and investment in working capital
incase of aggressive and conservatives policy of working capital.Thanks,
The level of investment is looking at the overall level of working capital and whether it is higher or lower than the average amount of working capital for similar types of business,
The funding of working capital is looking at how it is financed. Whether it is financed mainly by long-term or by short-term borrowing.
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