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The objective of working capital management is to maintain the optimum balance of each of the working capital components. This includes making sure that funds are held as cash in bank deposits for as long as and in the largest amounts possible, thereby maximizing the interest earned. However, such cash may more appropriately be "invested" in other assets or in reducing other liabilities. When considering these techniques and strategies of Working capital, departments need to recognize that each department has a unique mix of working capital components. The emphasis that needs to be placed on…mehr

Produktbeschreibung
The objective of working capital management is to maintain the optimum balance of each of the working capital components. This includes making sure that funds are held as cash in bank deposits for as long as and in the largest amounts possible, thereby maximizing the interest earned. However, such cash may more appropriately be "invested" in other assets or in reducing other liabilities. When considering these techniques and strategies of Working capital, departments need to recognize that each department has a unique mix of working capital components. The emphasis that needs to be placed on each component varies according to department. For example, some departments have significant inventory levels; others have little if any inventory. Furthermore, working capital management is not an end in itself. It is an integral part of the department's overall management. The needs of efficient working capital management must be considered in relation to other aspects of the department's financial and non-financial performance.
Autorenporträt
Trabalho como professor associado na Hyderabad Business School, GITAM University, tenho 25 anos de experiência no ensino de Gestão Financeira e obtive o título de doutor pela Osmaina University com uma tese em finanças intitulada "Empréstimos de bancos cooperativos ao setor prioritário em Ranga Reddy Dist".