WELCOME

ANU P . DAVIES

MANAGEMENT
OF WORKING
CAPITAL

WHAT IS WORKING
CAPITAL???
According to Genestenberg , Circulating capital means
current assets of a company that are changed in the
ordinary course of business from one form to another , as
for example , from cash to inventories , inventories to
receivables , receivables to cash.
Working capital refers to that part of firms capital which
is required for financing short term or current assets
such as cash , marketable securities , debtors and
inventories..
Working capital also known as revolving or circulating or
short term capital..

MANAGEMENT OF WORKING
CAPITAL
It refers to all aspects of administration of both current
assets and current liabilities .
The basic goal of working capital management is to
manage the current assets and current liabilities of a
firm .
That is neither excessive nor inadequate
Working capital management policies of a firm have great
effect on its profitability , liquidity , structural health of
the organization.

Contd..
In this context working capital management is three
dimensional
1. Dimension
2. Dimension
3. Dimension

in nature:
i - profitability , risk and liquidity
ii - composition and level of current assets
iii- composition and level of current liabilities

Figure
dim

dim

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Any Doubts ?????

THANK YOU