Working Capital Management

Working Capital Management refers to how a business manages its short-term assets and liabilities to ensure it can meet its day-to-day operations. This involves balancing cash, inventory, and accounts receivable (money owed by customers) against accounts payable (money the business owes). Effective working capital management helps ensure a company has enough liquidity to pay its bills, invest in growth, and navigate unexpected expenses, ultimately supporting its overall financial strategy and stability. Good management of working capital can lead to improved profitability and operational efficiency.