Working Capital
Submitted by Kionis on February 1, 2009
- Category: Social Issues
- Words: 789
- Pages: 4
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Working Capital
Working capital is essential to the financial management of an organization; working capital measures the ability of an organization to pay short term loans, liabilities, and debts are due for payment. Effectively managing working capital is necessary to reach the short and long-term goals of an organization.
Managing working capital effectively involves monitoring the organization’s current assets, and keeping it at a realistic level. The organizations that keep a circulating cash flow and low working capital ratio can maximize its profits.
When organizations apply controls, polices and procedures of managing working capital, it ensures the organization...
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