Executive summary
Working capital management refers to the administration of all aspects of current assets, namely cash, marketable securities, debtors and stock (inventories) and current liabilities. The financial manager must determine levels and composition of current assets. He must see that right sources are tapped to finance current assets, and that current liabilities are paid in time. He must see that right sources are tapped to finance current assets, and that current liabilities are paid in time.
There are many aspects of working capital management, which make it an important function of the financial manager:
• Time: working capital management requires much of the financial manager’s time.
• Investment: working capital represents a large portion of the total investments in assets.
• Significance: working capital management has great significance for all firms but it is very critical for small firms.
• Growth: the need for working capital is directly related to the firm’s growth.
Investment in current assets represents a very significant portion of the total investment in assets. Working capital management is critical for all firms. A small firm may not have much investment in fixed assets, but it has to invest to in current assets. Small firms in India face a severe problem of collecting their debtors.
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Working capital management refers to the administration of all aspects of current assets, namely cash, marketable securities, debtors and stock (inventories) and current liabilities. The financial manager must determine levels and composition of current assets. He must see that right sources are tapped to finance current assets, and that current liabilities are paid in time. He must see that right sources are tapped to finance current assets, and that current liabilities are paid in time.
There are many aspects of working capital management, which make it an important function of the financial manager:
• Time: working capital management requires much of the financial manager’s time.
• Investment: working capital represents a large portion of the total investments in assets.
• Significance: working capital management has great significance for all firms but it is very critical for small firms.
• Growth: the need for working capital is directly related to the firm’s growth.
Investment in current assets represents a very significant portion of the total investment in assets. Working capital management is critical for all firms. A small firm may not have much investment in fixed assets, but it has to invest to in current assets. Small firms in India face a severe problem of collecting their debtors.
Download Full Project Report
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