Working capital management is a strategic approach to managing a business’ short-term resources and liabilities in order to maximize profitability and ensure optimal cash flow. It involves planning for the most efficient use of a company’s current assets and liabilities to cover short-term operational costs, fund investments in new projects, and maintain liquidity. Good working capital management strategies can help businesses manage their current assets and liabilities in a way that optimizes cash flow while also limiting exposure to financial risk.