2. Permanent Working Capital – Funds necessary to carry the operations of a business. In this article, the author investigates the determinants of working capital requirements of 66 firms in Nigeria using panel data for the period 1997–2007. Semi-variable Working Capital – The fund requirements remains same up to a stage, then increases with sales and time. Big business organizations require more working capital than the small business organization. WORKING CAPITAL The capital which is needed for the regular operation of business is called working capital. A constant inflow of funds has to be ensured to keep the daily operations of the company motoring along smoothly. The total working capital requirement is determined. Working capital cycle refers to the time required to convert the raw materials into finished goods and up to the stage of conversion of finished goods into cash form. Determinants of Working Capital Number of factors has an influence on the size and need of working capital in an organisation. Determinants of Working Capital Requirement The following are five determinants of working capital requirement: (i) Type of Business: Working capital requirement of a firm depends on its nature of business. Determinants of working capital 1. An organisation that deals in services or trading will not require much of working capital. The purpose of this paper is to empirically analyze and identify key factors affecting working capital behavior of companies listed on the Egyptian Stock Exchange.,Working capital requirement and cash conversion cycle were used to proxy working capital behavior. A firm should plan its operations in such a way that it should have neither too much nor too little working capital. These factors, however, affect different enterprises differently.They also vary from time to time. DETERMINANTS OF WORKING CAPITAL • PRESENTED BY- SADIQUE ALI ENROLLMENT NO-A165386 • SUBMITTED TO- Dr. Syed Khaja Safiuddin ASSISTANT PROFESSOR 2. 8. However, the effects of the determinants of working capital management differ depending on enterprise size and enterprise age. If the working capital cycle is long, there is a need of more amount of working capital and vice versa. Working capital requirement of a firm is directly influenced by the size of its business operation. If the manufacturing process is long, huge amount of working capital will be required and vice versa. In any business, managing working capital is a never-ending task for the finance and accounting personnel. so utmost care should be taken to shorten the period of cycle in order to minimize the working capital requirements. understand the role and determinants of working capital. 7. The relationship between current assets and current liability items is called working capital of the organization. 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