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Working capital management requires monitoring a company's assets and liabilities to maintain sufficient cash flow to meet its short-term operating costs...
Working capital management involves balancing movements related to five main items – cash, trade receivables, trade payables, short-term financing, and inventory – to make sure a business possesses adequate resources to operate efficiently.
Working capital management consists of managing the working capital of a business, which can be defined as current assets minus current liabilities of a business. Working capital management can also include the working capital investment or working capital financing policies of a business.
Working capital management is a financial strategy that involves optimizing the use of working capital to meet day-to-day operating expenses while helping ensure the company invests its resources in productive ways.
Working capital management is a close analysis of assets and liabilities that focuses on maintaining sufficient cash flow to cover short-term liabilities. It relies on a few key ratios: the current ratio, the collection ratio, and the inventory turnover ratio.
Working capital, also known as net working capital (NWC), is the difference between a company’s current assets —like cash, accounts receivable/customers’ unpaid bills, and inventories of raw...
Working capital is the day-to-day cash that a company needs to run business operations. It is the difference between a company's current assets and its...
Working capital. Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital is equal to current assets.
Working capital, in other words, means management of current assets: namely, cash in hand, cash at bank, bills receivable, closing stock, and debtors. It also means management of current liabilities, including sundry creditors, bills payable, outstanding creditors, bank overdraft, and so on.
Working Capital Management Definition. The term working capital management refers to the efforts of the management towards the effective management of current assets and current liabilities. It is mainly concerned with the fact that funds are not unnecessarily locked in current assets.