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: It is this management of such assets as well as liabilities which is described as working capital management. Working capital management is a quintessential part of financial management as a subject. It can also be compared with long-term decision-making the process as both of the domains deal with the analysis of risk and profitability. Pause
0:00 / 0:00
Speed: Normal
Speed
0.25
0.5
0.75
Normal
1.25
1.5
1.75
2
Settings
Voltax
Full-screen
1) Definition of Working Capital
Working capital is formally arrived at by subtracting the current liabilities from current assets of a firm on the day the balance sheet is drawn up. Working capital is also represented by a firm’s net investment in current assets necessary to support its everyday business. Working capital frequently changes its form and is sometimes also referred to as circulating capital. According to Gretsenberg: “circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.” 2) Types of working capital
Working capital, as mentioned above, can take different forms.