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 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. It refers to the amount that has to be paid to suppliers for the purchase of goods and /or services. Debtors refer to the accounts receivables. It refers to the amount that is collected for providing goods and/or services. Inventory
Inventory refers to the stock in hand. Inventories are an integral component of working capital and careful planning, and proper investment is necessary to maintain the inventory in a healthy state of affairs.