Working capital decisions involve the balance between short-term assets and liabilities of a business. The goal here is to ensure that the company has enough liquidity to meet its day-to-day financial obligations, while making sure not to tie up too much of their resources in assets that have slow turnover rates. It’s important for companies to be able to accurately assess the amount of working capital they need in order to grow and succeed, as having too little or too much can result in serious consequences. By taking into account important factors such as customer credit policies, supply chain management, sales trends, production needs and more, businesses can make more informed decisions about their working capital and achieve greater success.