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The aim of working
capital management is
to ensure that a firm is

able to continue its
operations and that it
has sufficient ability to
satisfy both maturing

AIM

short-term debt and
upcoming operational
expenses.

The management of working capital involves managing inventories, accounts
receivable and payable, and cash.
I C
M E
It is therefore very
P
important to put in place
an excellent working
O
capital management
R
system to ensure your
organization operates
T
optimally. Balancing your
needs with obligations will
A
also help you to avoid
N
bankruptcy.

Meeting
Creditors

Improve
Reputation

Improve
Flow of
Operation
Meeting Creditors
An effective will help you meet your obligations when
they fall due, thus, if creditors make immediate
demands for their money, you are able to meet them.
Improve Reputation
Being able to pay your creditors without fail will
improve your reputation in your business
environment, the creditors will become loyal to you.
Improve Flow of Operation
A positive working capital will also enable your firm to
pay its daily operation expenses such as wages bills and
other overheads resulting in a smooth flow of
operations without unnecessary stoppages.
Working capital management ppt by aviram jena

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Working capital management ppt by aviram jena

  • 1.
  • 2.
  • 3. The aim of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing AIM short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.
  • 4.
  • 5. I C M E It is therefore very P important to put in place an excellent working O capital management R system to ensure your organization operates T optimally. Balancing your needs with obligations will A also help you to avoid N bankruptcy. Meeting Creditors Improve Reputation Improve Flow of Operation
  • 6. Meeting Creditors An effective will help you meet your obligations when they fall due, thus, if creditors make immediate demands for their money, you are able to meet them.
  • 7. Improve Reputation Being able to pay your creditors without fail will improve your reputation in your business environment, the creditors will become loyal to you.
  • 8. Improve Flow of Operation A positive working capital will also enable your firm to pay its daily operation expenses such as wages bills and other overheads resulting in a smooth flow of operations without unnecessary stoppages.