Understanding the process of managing short-term assets and liabilities.
1. Current Assets: Cash, inventory, and receivables. 2. Current Liabilities: Debts and payables due within a year.
Helps maintain smooth business operations, ensures liquidity, and supports growth.
– Optimize cash flow – Manage inventory levels – Efficient debt management
– Improved profitability – Better financial health – Increased operational efficiency
Cash flow mismanagement, unexpected expenses, delayed payments from customers.
Efficient working capital management leads to business success and sustainability.