Working Capital is a financial metric which represent the amount required by the organisation for day-to-day business operations efficiently. It is required by every business organisation whether big or small. The working capital represents the operating liquidity of a business unit. An organisation can provide with its assets and profitability but sometimes may fall short of liquidity if the assets of the organisation cannot be readily converted into cash. Positive working capital is vital to ensure that an organisation is able to continue the operations and it also has sufficient funds to satisfy both the short-term debt those are maturing as well as the future operational expenses. Thus, proper management of the current assets and the current liabilities of an organisation are needed, by this the concept of working capital management comes into existence. In a nutshell we can say that organisation short financing are referred to as working capital management. With this objective my paper presents the factors determining working capital needs with reference to working capital based on concept and time factor.

Keywords: Working Capital, Gross Working Capital, Net Working Capital, Permanent Working Capital, Temporary Working Capital.