Working Capital Management
Working Capital Management
Everything You Need to Know
If Cash is King
Then, Cash Flow and Working Capital are trusted advisors of the king.
Cash Flow forecast tells you if there will be a cash surplus or deficit.
Working Capital tells you what areas to deep-dive, analyze, and optimize.
Today, we are focusing on Working Capital Management.
This is what we are discussing:
𝗥𝗘𝗦𝗣𝗢𝗡𝗦𝗕𝗜𝗟𝗜𝗧𝗬
– Prepare – GL, AP, & AR Accountants
– Review & Recommend – Finance Manager
– Strategic Initiatives – Financial Controller
𝗪𝗢𝗥𝗞𝗜𝗡𝗚 𝗖𝗔𝗣𝗜𝗧𝗔𝗟 𝗢𝗣𝗧𝗜𝗠𝗜𝗭𝗔𝗧𝗜𝗢𝗡
– Cash Flow Management
– Optimizing Working Capital
– Budgeting and Planning
– Technology & Automation
𝗪𝗢𝗥𝗞𝗜𝗡𝗚 𝗖𝗔𝗣𝗜𝗧𝗔𝗟 𝗙𝗢𝗥𝗠𝗨𝗟𝗔 𝗔𝗡𝗗 𝗥𝗔𝗧𝗜𝗢
– Working Capital = Current Assets−Current Liabilities
– WC Ratio (Current Ratio) = Currents Assets / Current Liabilities
𝗜𝗠𝗣𝗢𝗥𝗧𝗔𝗡𝗖𝗘 𝗢𝗙 𝗪𝗢𝗥𝗞𝗜𝗡𝗚 𝗖𝗔𝗣𝗜𝗧𝗔𝗟 𝗠𝗔𝗡𝗔𝗚𝗘𝗠𝗘𝗡𝗧
– Operational Efficiency
– Liquidity Management
– Risk Management
– Investor and Creditor Confidence
