Permanent net operating working capital
Permanent net operating working capital is the NOWC that is required when the economy is weak and seasonal sales are at their low point. Thus, this level of NOWC always requires financing and can be regarded as permanent.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Permanent net operating working capital. The NOWC required when the economy is weak and seasonal sales are at their low point. Thus, this level of NOWC always requires financing and can be regarded as permanent.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
