This document provides an introduction to working capital management. It defines working capital as the part of a company's capital that is used to finance short-term assets such as cash, marketable securities, debtors, and inventories. Working capital management refers to administering both current assets and current liabilities in a way that is neither excessive nor inadequate. It affects a firm's profitability, liquidity, and structural health. Working capital management has three dimensions: profitability and risk and liquidity, composition and level of current assets, and composition and level of current liabilities.

1. WELCOME
ANU P . DAVIES

2. MANAGEMENT OF
WORKING CAPITAL

3. WHAT IS WORKING CAPITAL???
 According to Genestenberg , “ Circulating capital means current assets of a
company that are changed in the ordinary course of business from one
form to another , as for example , from cash to inventories , inventories to
receivables , receivables to cash.”
Working capital refers to that part of firm’s capital which is required for
financing short term or current assets such as cash , marketable securities ,
debtors and inventories..
Working capital also known as revolving or circulating or short term capital..

4. MANAGEMENT OF WORKING CAPITAL
 It refers to all aspects of administration of both current assets and current
liabilities .
The basic goal of working capital management is to manage the current
assets and current liabilities of a firm .
That is neither excessive nor inadequate
Working capital management policies of a firm have great effect on it’s
profitability , liquidity , structural health of the organization.

5. Contd…..
• In this context working capital management is three dimensional in nature:
1. Dimension i - profitability , risk and liquidity
2. Dimension ii - composition and level of current assets
3. Dimension iii- composition and level of current liabilities

6. Figure
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7. Any Doubts ?????

8. THANK YOU