Working capital management

Working capital management

The deployment of current assets and current liabilities so as to maximize short-term liquidity.

Working Capital Management

An accounting strategy in which a company seeks to maximize its cash flows so as to pay for its current liabilities and operating expenses. Examples of working capital management include active monitoring of accounts receivable and maintaining little short-term debt. Working capital management, if done properly, can help a company improve its earnings and maintain a healthy financial state.
References in periodicals archive ?
On the basis of data it can be concluded that working capital management does not affect profitability of sugar industry.
Sound working capital management is essential for optimal profitability--or even for staying in business.
It is during such times that working capital management captures the attention of top management as the corporate goals shift from maximizing profits to securing liquidity.
The forum focused on how organisations are managing their liquidity needs and position during this period, cash flow pressure and optimal working capital management, covering topics such as cash flow forecasting, liquidity and working capital management and control of the flow of funds.
The event comes at a time when recovery from the financial crisis is under way and the pressure on optimal working capital management and return on investment dictate that surplus cash be put to use.
The rating continues to reflect the company's moderate operating efficiencies, marked by good working capital management, and above-average financial risk profile marked by moderate debt protection measures.
Working capital management is a very important component of corporate finance because it directly affects the liquidity and profitability of a company.
This provides C-level executives with more accurate short-term, intermediate-term and long-term forecasting capabilities to improve working capital management.
This change in strategy resulted in the addition to the company's balance sheet of $10 million in interest earning receivables, somewhat mitigating the impact of Steinway's working capital management.
090060) is an introduction and overview of working capital management.
A comprehensive primer for executives and managers on working capital management
The results suggest that working capital management affects the liquidity and profitability of firms, a key factor in the success and failure of firms.