Title: Working Capital Management: Everything You Need to Know | Cleverism
Headings: Working Capital Management: Everything You Need to Know
Working Capital Management: Everything You Need to Know
INTRODUCTION TO WORKING CAPITAL MANAGEMENT
1) Definition of Working Capital
2) Types of working capital
3) Objectives of working capital management
THE WORKING CAPITAL CYCLE
Cash
Creditors and Debtors
Inventory
Properties of a healthy working capital cycle
APPROACHES TO WORKING CAPITAL MANAGEMENT
SIGNIFICANCE OF ADEQUATE WORKING CAPITAL
FACTORS FOR DETERMINING THE AMOUNT OF WORKING CAPITAL NEEDED

Content: Such variable funds are drawn from short-term sources and are referred to as variable working capital. 3) Objectives of working capital management
The main objectives of working capital management are: Maintaining the working capital operating cycle and to ensure its smooth operation. Maintaining the smooth operation of the operating cycle is essential for the business to function. The operating cycle here refers to the entire life cycle of a business. From the acquisition of the raw material to the smooth production and delivery of the end products – working capital management strives to ensure smoothness, and it is one of the main objectives of the concept. Mitigating the cost of capital. Minimizing the cost of capital is another very important objective that working capital management strives to achieve. The cost of capital is the capital that is spent on maintaining the working capital. It needs to be ensured that the costs involved for maintenance of healthy working capital are carefully monitored, negotiated and managed.