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Working Capital Management

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Working Capital Management
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Good management of working capital is part of good financial management. Effective use of working capital will contribute to the operational efficiency of a department; optimum use will help to generate maximum returns.

Ratio analysis can be used to identify working capital areas which require closer management. Various techniques and strategies are available for managing specific working capital items.

Debtors, creditors, cash and in some cases inventories are the areas most likely to be relevant to departments.

Further Information

The Management of Working Capital V. L. Gole (1987) Information Australia,
ISBN 0 949338 44 3

Modern Working Capital Management F.C. Scherr (1989) Prentice Hall,
ISBN 0 13 599317 2

Working Capital Management J.J. Hampton (1989) John Wiley and Sons,
ISBN 0 471 60260 4

Current Asset Management J.G. Kallberg and K.L. Parkinson (1984) John Wiley and Sons, ISBN 0 4711 87090 0

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