Management of working capital elements

Dec 20, 2016 · The goal of working capital management is to support the long-term operation and financial goals of the business. In effect, this involves recognizing the relationship between risk and return. Three elements must have included in analyzing the tradeoff between risk and return when managing working capital.

Description: The study has identified and examines the main elements of working capital. It has been observed that the management of working capital requires an evaluation of both costs and benefits associated with each element.

Dec 06, 2016 · Working capital management is the management of all aspects of both current assets and current liabilities, to minimise the risk of insolvency while maximising the return on assets. The attitude of management to risk: aggressive, conservative and matching funding policies. There is no ideal funding package, but three approaches may be identified. Working capital management defines the management in the short term of the relationship between a company’s current assets and liabilities. The most common elements of working capital will include inventory, receivables and payables which represent the operating working capital (OWC) held by a company usually within a year. Key words: Working Capital Management, Performance, Cash Conversion Cycle. 1. INTRODUCTION Working capital management is considered to be a crucial element in determining the financial performance of an organization. Working capital management is a simple and straight forward concept of ensuring the ability of the firm to

Evidence Fr Aktas, N., Croci, E., Petmezas, D., 2015, Is Working Capital Management Value-enhancing? Evidence Fr Monte Carlo Simulation, Working Capital Capital Budgeting Financial Management Pdf Capital Structure Theories In Financial Management Working Captal Management V K Bhalla Financial Management By Khan And Jain 6th Edition Capital Bugeting