oboloo Glossary

Working Capital Efficiency

oboloo Glossary

Working Capital Efficiency

Working capital efficiency is the measure of an organization’s ability to manage their current assets and liabilities. It encompasses all aspects of its operations – from how quickly it collects payments from customers, to how efficiently it pays its invoices, to how well it manages cash flow. A high degree of working capital efficiency means that an organization can effectively finance its own growth while also maintaining a strong balance sheet. By having effective working capital policies and procedures in place, businesses can ensure they stay profitable and well-funded for years to come.