Is the development in working capital requirement the same, whether it is a processing company or a distribution company? Why ?

Thanks for invitation,

Agree with the answer of Mr. Frank Mwansa, since it depends on lot of factors, for example,

- The Industry and the technology used.

- The degree of the development in the society.

- The Organization's "Credit Policy".

- The Organization's "Collection Policy".

- The Organization's "Cash Management" efficiency. 

- 

Thanks for invitation 

Working capital is a daily necessity for business  because they require a regular amount of cash to make routine payment cover unexpected cost and purchase basic materials used in production of goods. However, the needs of working capital vary from industry to industry and they can even vary among similar companies. This is because of several factors. Eg differences collecting and payment policies, timing of asset purchases, the likelihood of a co writing off some of its past account receivable and capital raising capacity. As such the development of working capital requirements are not the same between the two industries.

Working capital is a measure of both company's efficiency and its shot-term financial health, it's aldo the amount of working capital a company determines in order to continue to meet its costs and expenses _It Will be different fir each company, depending upon many factors such as hiw frequently the company receives earnings and how high their experiences are.