Working capital refers to the continuous flow of enterprise funds. For example, when enterprises buy goods, capital changes from monetary form to commodity form. With the sale of commodities, enterprises have made certain profits, which makes capital return from commodity form to monetary form. The core problem of capital turnover is the time or speed of capital movement and its influence on capital occupation, product production and value creation.

What are the manifestations of the capital movement?

1. Enterprises raise funds by attracting investment, borrowing from banks and issuing stocks or bonds to increase their capital.

2. Enterprises use monetary funds to purchase materials and form reserve funds. Workers use their own production technology to process materials with the help of mechanical equipment, saving production capital costs. After the product is completed, it becomes a finished product fund. Sell products, collect payment for goods, and obtain new monetary funds.

3. The enterprise repays bank loans, pays taxes, and distributes profits or dividends.