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This ppt will help u in enhancing ur knowledge about the working capital management...and u can learn some of the effects & animation used in office power point.
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Presented by:
Aviram Jena
Working Capital Management
Working Capital
Working capital is the net of current assets minus current liabilities.
Working Capital Management
AIM
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 short-
term debt and
upcoming
operational
expenses.
The management of working capital involves managing
inventories, accounts receivable and payable, and cash.
Working Capital Management
WHY FIRMS HOLD CASH
Speculation
Precaution
Transaction
Working Capital Management
IMPORTANCE
It is therefore very
important to put in place
an excellent working capital
management system to
ensure your organization
operates optimally.
Balancing your needs with
obligations will also help
you to avoid bankruptcy.
Meeting Creditors
ImproveReputation
ImproveFlow of
Operation
Working Capital Management
Meeting CreditorsAn 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.
Working Capital Management
Improve ReputationBeing able to pay your creditors without fail will improve your reputation in your business environment, the creditors will become loyal to you.
Working Capital Management
Improve Flow of OperationA 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.
