Title: Working Capital Management | Meaning, Goals, Strategies, Policies, etc
Headings: Working Capital Management
Working Capital Management
Working Capital Management Definition
Objectives of Working Capital Management
Importance of Effective Working Capital Management
Decisions in Working Capital Management
Working Capital Deciding Factors – Level and Mode of Financing
Working Capital Management Policies
Working Capital Management Strategies
Advantages of Working Capital Management
Disadvantages of Working Capital Management
Sanjay Bulaki Borad

Content: For achieving the smooth operating cycle, it is also important to keep the requirement of working capital at the lowest. This may be achieved by favorable credit terms with accounts payable and receivables both, faster production cycle, effective inventory management etc. Minimize Rate of Interest or Cost of Capital: It is important to understand that the interest cost of capital is one of the major costs in any firm. The management of the firm should negotiate well with the financial institutions, select the right mode of finance, maintain optimal capital structure etc. Optimal Return on Current Asset Investment: In many businesses, you have a liquidity crunch at one point of time and excess liquidity at another. This happens mostly with seasonal industries. At the time of excess liquidity, the management should have good short-term investment avenues to take benefit of the idle funds. For a detailed understanding, you may consider referring, Objectives of Working Capital Management.