Working capital refers to the financial liquidity available to a given corporation. In this presentation, I've listed some of important key feature of the work capital management.

1. WORKING CAPITAL MANAGEMENT
Basic concepts
The key feature of work capital

2. it is considered a part of
the operating capital of an
organization along with
long term assets like
factories or office spaces.
Working capital comprises
the current assets of the
given company which
include cash, cash
receivables, inventory, sho
rt term investments etc.
Three important aspects of
the working of an
organization impact its
working capital position.
Working capital refers to the financial liquidity
available to a given corporation.

3.  They are accounts receivable, inventory and accounts
payable. The first two are part of current assets while the
third is part of current liabilities.
 All financial assets that can be converted into money
within 12 months are current assets. Net working capital is
calculated by subtracting current liabilities from current
assets.
 Working capital management involves short term decision
making i.e.
 managing the short term assets and liabilities of a firm,
thus ensuring that the firm has enough financial resources
to keep operations running and to meet upcoming
demands.

4. Working capital management decisions therefore are based
either on cash flows or on profitability or both. The
management of the working capital involves four major
factors namely
 cash management
 debtors management
 inventory management
 short term financing.

5. The primary considerations taken into account while
managing working capital are cash conversion cycle
 return on capital
 economic value added
 just-in-time
 economic order quantity
 discounts
 allowances
 factoring.
Ratios such as return on equity and return on investment
which affect the cash conversion cycle of an organization
are taken into consideration during the working capital
management process.

6. For further information about
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WORKING CAPITAL MANAGEMENT