WORKING CAPITAL MANAGEMENT

WORKING CAPITAL

The capital of a business which is used in its day-by-day trading operations, calculated as the
current assets minus the current liabilities. Working capital is also called operating assets or net
current assets.

                                                          WC= CA-CL

WORKING CAPITAL MANAGEMENT

Working capital management refers to a company’s managerial accounting strategy designed to
monitor and utilize the two components of working capital, current assets and current liabilities,
to ensure the most financially efficient operation of the company.

NEED OF WORKING CAPITAL MANAGEMENT

• Inventory Management
• Receivables Management
• Cash Management