Working capital management is crucial for companies to operate daily business activities smoothly. This article will analyze the key components of working capital, including cash, inventory, accounts receivable and payable, and short-term debt financing. Proper investment and planning in working capital help companies improve liquidity, meet short-term obligations, and support business growth.
Measure working capital level to determine liquidity position
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Optimize inventory, receivables and payables to boost efficiency
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Utilize short-term financing to maintain sufficient capital
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In summary, thoughtful management of working capital through monitoring liquidity metrics, optimizing current accounts, and leveraging short-term financing allows companies to operate sustainably.