What Are The Specific Determinants Of Working Capital?

Working capital is the difference between the current assets and the current liabilities. The major determinant of the working capital is the size and the structure of the working capital. Companies with bigger sizes and structures have high working capital requirements. Second determinant of working capital is the nature of the business for example, banks have high current liabilities and low current assets therefore, their working capital is different as compare to a company dealing with manufacturing business.