Nnintroduction of working capital management pdf

The main current assets are stock, debtors and cash, while current. Working capital management definition investopedia. The suppliers of such working capital should not expect its return during the lifetime of the firm. Evidence from iranian companies article pdf available in procedia social and behavioral sciences 62. The difference between current assets and current liabilities is known as working capital. Public depositsloans offer attractive interest, 15% per year. Working capital management is a strategy that requires monitoring a companys current assets and liabilities to ensure its efficient operation. Pdf working capital management and corporate performance. The efficiency of working capital management can be determined by the cash conversion cycle and the net trade cycle. The interplay between working capital management and a.

Management of working capital in terms of liquidity and profitability management are essential for sound financial recital as it has a direct impact on. They are a good source of working capital in india. An introduction to working capital management working. Amount of permanent working capital remains in the business in one form or another. Unlike investments in fixed assets which generate cash inflows over long periods of time, current assets have a cashtocash conversion cycle of less than twelve. Working capital management is the regulation, adjustment and control of the balance of current assets and current liabilities of a firm such that maturing obligations are met, and the fixed assets. What can always be relied upon to meet the contingencies, is the excess of current assets notes over the current liabilities since this amount is not to be returned. If the firm cannot maintain a satisfactory level of working capital, it is likely to become insolvent. Working capital management wcm plays an imperative role in.