50 likes | 59 Views
Maximizing Efficiency and Profitability" refers to the strategic approach of optimizing operational processes and financial outcomes within an organization. By focusing on efficiency, companies aim to streamline their operations, reduce waste, and enhance productivity.
E N D
Maximizing Efficiency and Profitability Working Capital Management
01 Definition of Working Capital Management • Definition of Working Capital Management: The management of a company's short-term assets and liabilities to ensure its day-to-day operations run smoothly. • Importance of Working Capital: Efficient management of working capital is crucial for maintaining liquidity, meeting short-term obligations, and maximizing profitability.
02 Components of Working Capital • Current Assets: Cash, accounts receivable, inventory, and short-term investments. • Current Liabilities: Accounts payable, short-term loans, and accrued expenses.
03 Objectives of Working Capital Management • Maintaining Sufficient Liquidity • Optimizing Inventory Levels • Efficient Accounts Receivable Management • Managing Accounts Payable