Working Capital Management

Год: 2011
Автор: DANIEL LAZAR and K.P. Shaji
Издательство: LAP Lambert Academic Publishing
Описание:
The term working capital is defined as a firms total investment in current assets. Some defined it as firms current asset minus current liabilities. The capital required for the day to day operations of the business is called working capital. Working capital management is an integral component of the overall corporate strategy to create shareholder value (Abor 2004).Working capital management deals with current assets and current liabilities (Nasr and Rehaman2007). Eljelly (2004) defines that working capital management involves planning and controlling current assets and liabilities to meet the short term obligation without any delay. Efficiency of working capital management is a serious issue especially to manufacturing firms whose assets are mostly composed of current assets(Horne and Wachowitz,1998). There are many ways to improve the profitability of companies; working capital management is one of the important tools in the hand of financial manager to increase the…
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