Working Capital Management -Main Content

It’s critical to manage the company’s working capital as cash generated from the working capital cycle is not synonymous with profit generated from the business. Without adequate cash/liquidity, profitable companies can not survived as they need to pay their liabilities from cash and not from profit.

Some examination questions test the candidates on the understanding, objective and how to optimize the working capital as this is one way to do value-adding to the organization.


Useful Information


Introduction & Reasons/Objectives of Working Capital Management


Optimizing Working Capital by Managing Debtors


Optimizing Working Capital by Managing Stocks


Optimizing Working Capital by Managing Accounts Payable


Further Reading on Cash Operating Cycle

Article 1; Article 2


Cash Management

Article on The Importance of Cash flows

Article on Improving Cash flows

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