What is permanent net operating working capital?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
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What is permanent net operating working capital?

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Permanent net operating work capital is also referred to as fixed work capital. Continuous work capital doesn't really rely on manufacturing or sales rates. It is somewhat similar due to its perpetual (fixed) nature to fixed assets.

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Even so, it should be noted that permanent working capital also isn't fixed: over time, its amount is able to alter. The permanent capital function based on both on a company process and

 

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