oboloo Glossary

Working Capital Management

oboloo Glossary

Working Capital Management

Working capital management is the practice of managing a company’s short-term financial resources and current assets. The goal is to optimize a company’s liquidity, profitability, and risk by monitoring and adjusting the levels of cash, inventory, and accounts receivable. By focusing on the efficient use of working capital, businesses can control their cash flows and achieve better financial health. The effective management of working capital can help companies turn profitable business opportunities into successful results.