Mind Map of Working Capital Management by Darshana891107

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									                         Working Capital Management


Working Capital Management means the administration of the firm’s current assets and the
financing needed to support current assets.

    Net working Capital = Current Assets - Current Liabilities
    Gross Working Capital = The firm’s investment in current assets

Significance of Working Capital Management


    The amount of assets tied up in Working Capital Management if very important.
    Working Capital Management affects day to day affairs.
    Working Capital Management affects the company’s risks, returns and share price.
    Working Capital Management requires continuous, day to day managerial
       supervision.
    Current liabilities are the principal source of external financing for small firms.


                                    Current Assets




   Cash           Accounts             Inventories          Marketable              Other
           
								
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