Working capital management refers to a company's
managerial accounting strategy designed to
monitor and utilize the two components of working
capital, current assets and current liabilities , to
ensure the most financially efficient operation of
the company. The primary purpose of working
capital management is to make sure the company
always maintains sufficient cash flow to meet its
short-term operating costs and short-term debt
obligations.
Written on July 16, 2016, 4:47 p.m.