Cash management is a broad term that refers to the collection, concentration and disbursement of cash. It encompasses a firm's level of liquidity, its management of cash balance and its short-term investment strategies. In some ways, managing cash flow is the most important job of a finance manager. If at any time, the firm fails to pay an obligation when [...]
After reading this essay you will learn about:- 1. Introduction to Working Capital 2. Operating Cycle Concept of Working Capital Computation 3. Working Capital Financing Approaches 4. Sources of Working Capital Finance 5. Management of Liquid Assets. Essay # 1. Introduction to Working Capital: Components of current assets are (i) Inventories, (it) Debtors and (m) Cash and Bank Balance. Components [...]
In this article we will discuss about:- 1. Meaning of Working Capital 2. Components of Working Capital 3. Gross and Net Working Capital 4. Permanent and Temporary Working Capital 5. Positive and Negative Working Capital 6. Objectives. Meaning of Working Capital: Working capital management is a significant in financial management due to the fact that it plays a pivotal role [...]