Working capital management focuses on making sure that an organization has sufficient resources to operate?

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22-08-2022
Business

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Working capital management focuses on making sure that an organization has sufficient resources to operate?

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qwseagreen qwseagreen · Answer 1 · 2022-08-27T18:08:34+02:00

Working capital management focuses on making sure that an organization has sufficient resources to operate over the next year. Working capital management is a business strategy designed to make sure that an organization operates efficiently by monitoring and utilizing its current assets and liabilities to their most effective use.

Working capital management requires monitoring a company's assets and liabilities to maintain sufficient cash flow to meet its short-term operating expenses and short-term debt obligations. Working capital management involves tracking various ratios including working capital ratio, collection ratio, and inventory ratio.

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