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Working Capital Management

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1. Introduction to Working Capital Working capital management is significant in Financial Management due to the fact that it plays a pivotal role in keeping the wheels of a business enterprise running. Working capital management is concerned with short-term financial decisions.  Shortage of funds for working capital has caused many businesses to fail and in […]

What is Working Capital?

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Working capital indicates revolving a circular flow of cash starting with cash paid for purchase of material and ending with cash receipt after the sale of finished goods. This is how working capital is a circular cash flow from cash to inventories and back to cash.  According to Shubin, “working capital is the amount of […]

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