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: There are mainly the following elements of which the working capital cycle is comprised of: Cash
The cash refers to the funds available for the purchase of goods. Maintaining a healthy level of liquidity with some buffer is always a best practice. It is extremely important to maintain a reserve fund which can be utilized when: There is a shortage of cash inflow for some reason. In the absence of reserve cash, the day to day business will get hampered. Some new opportunity springs up. In such a case, the absence of reserve cash will pose a hindrance. In case of any contingency, absence of a reserve fund can cripple the company and poses a threat to the solvency of the firm. Creditors and Debtors
The creditors refer to the accounts payable.