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 ?
The realization is that an effective working capital management will ease the difficulties caused by low sales, pricing pressures and patent cliffs.
A new EY report shows that mining companies are missing out on easy money because of poor working capital management.
KARACHI -- Standard Chartered Bank announced that it has launched a new receivables management capability to help Corporate Clients improve their working Capital Management.
Sound working capital management is essential for optimal profitability--or even for staying in business.
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.
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 analysis includes various components of working capital management such as days inventory outstanding, days payable outstanding, days sales outstanding and cash conversion cycle.