The document discusses working capital management and its importance for business operations. It defines working capital as the difference between current assets and current liabilities, and how managing it effectively ensures a business has enough cash flow to meet short-term debt obligations and operating expenses. Proper working capital management techniques include maintaining optimal levels of current assets like inventory and accounts receivable, and minimizing non-interest-bearing current liabilities.
The document discusses working capital management and its importance for business operations. It defines working capital as the difference between current assets and current liabilities, and how managing it effectively ensures a business has enough cash flow to meet short-term debt obligations and operating expenses. Proper working capital management techniques include maintaining optimal levels of current assets like inventory and accounts receivable, and minimizing non-interest-bearing current liabilities.
The document discusses working capital management and its importance for business operations. It defines working capital as the difference between current assets and current liabilities, and how managing it effectively ensures a business has enough cash flow to meet short-term debt obligations and operating expenses. Proper working capital management techniques include maintaining optimal levels of current assets like inventory and accounts receivable, and minimizing non-interest-bearing current liabilities.