Working Capital Mgmt

Working capital mgmt is a fundamental aspect of financial strategy that ensures a business maintains sufficient liquidity to meet its short-term obligations. The Concept of Working Capital Management is quite simple to understand — it refers to the accounts management strategy of a business, where the core aim is to control and efficiently make use of current liabilities and current assets. These are the two components of working capital, which come together to determine the financial efficiency (or otherwise) of the organization. In short, working capital mgmt strategies are implemented to ensure that the business constantly has enough cash available to fulfil its immediate debt obligations and operational costs. When a business begins experiencing problems with working capital mgmt, it may find itself in a position where remaining viable is thrown into question.

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This premium tutorial provides a comprehensive overview of the Concept of Working Capital Management in financial management for businesses and accountants alike. Along with an exploration of the importance of working capital, key concepts such as determining working capital requirements and controlling working capital under inflation are also covered. Learn how to determine and manage optimal cash flow, measure working capital mgmt, and ensure the business can always meet its primary financial obligations.

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