Working Capital - Working Capital Management

Working Capital Management

Corporate finance
Working capital
  • Cash conversion cycle
  • Return on capital
  • Economic Value Added
  • Just-in-time
  • Economic order quantity
  • Discounts and allowances
  • Factoring
Capital budgeting
  • Capital investment decisions
  • The investment decision
  • The financing decision
Sections
  • Managerial finance
  • Financial accounting
  • Management accounting
  • Mergers and acquisitions
  • Balance sheet analysis
  • Business plan
  • Corporate action
Societal components
  • Financial market
  • Financial market participants
  • Corporate finance
  • Personal finance
  • Public finance
  • Banks and banking
  • Financial regulation
  • Clawback

Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses.

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    —Ralph Waldo Emerson (1803–1882)

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    “This we take it is the grand characteristic of our age. By our skill in Mechanism, it has come to pass, that in the management of external things we excel all other ages; while in whatever respects the pure moral nature, in true dignity of soul and character, we are perhaps inferior to most civilised ages.”
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