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: Management of inventory has two aspects and involves a trade-off between cost and risk factors. Maintaining a sizable inventory has its accompanying costs that include locking of funds, increased maintenance and documentation cost and increased cost of storage. Apart from these things, there is also a chance of damage to the stored goods. On the other hand, maintaining a small inventory can disrupt the business lifecycle and can have serious impacts on the delivery schedule. As a result, it is extremely important to maintain the inventory at optimum levels which can be arrived at after careful analysis and a bit of experimentation. Properties of a healthy working capital cycle
It is essential for the business to maintain a healthy working capital cycle. The following points are necessary for the smooth functioning of the working capital cycle: Sourcing of raw material: Sourcing of raw material is the beginning point for most businesses. It should be ensured that the raw materials that are necessary for producing the desired goods are available at all times.