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: In all cases, some amount of cash, stock and/or account receivables are always locked in. These assets are necessary for the firm to carry out its day to day business. Such funds are drawn from long term sources and are necessary for running and existence of the business. Variable Working Capital: Working capital requirements of a business firm might increase or decrease from time to time due to various factors. 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.