Working Capital Management

What is Working Capital Management and How you can improve your Working Capital:

Working capital management ensures that the company is able to pay its current debt by using its cash flow. By using financial ratio analysis you can analyze cash flows and operating expenses and find ways for improving the current working capital.

In addition to ratios analysis each of the individual elements must be analyzed and improved. For instance, ratio analysis monitor the relationships / ratios between your financial data – from your income statement, balance sheet and cash flow statement, whilst ratios are crucial for management, it is also important for each of the individual drivers to be improved.

Read the working capital management guide