What is working capital management

Question

Accepted Answer

Working capital management involves managing a company's current assets and liabilities to ensure efficient operations and financial health.

It focuses on optimizing the balance between current assets (such as cash, inventory, and accounts receivable) and current liabilities (such as accounts payable and short-term debt)
Effective working capital management helps in maintaining liquidity, funding day-to-day operations, and supporting growth initiatives
Strategies include monitoring cash flow, managing inventory levels, negotiating favorable payment terms with suppliers, and optimizing accounts receivable collection processes

Top Shree Cement Senior Taxation Officer interview questions & answers