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 [...]
The following article will guide you about how to calculate working capital. One of the important objectives of working capital management is by maintaining the optimum levels of investment in current assets and by reducing the levels of current liabilities, the company can minimize the investments in working capital thereby improvement in return on capital employed is achieved. The term [...]