Abstract
Working capital management is a critical aspect of financial, management for businesses of all sizes and industries. This paper provides an overview, of the concept, of working capital, its components, and its significance in ensuring the smooth operation and financial, stability of a company. The primary objective of working capital management is to strike a balance between the current assets, and current liabilities, confirming that a company has sufficient liquidity to meet its short-term obligations while optimizing its use of resources. This paper delves into the various components of working capital, including cash, accounts receivable, inventory, and accounts payable. It explores strategies, and techniques that businesses can employ to effectively manage these components, such as cash flow, forecasting, inventory control, and credit management. The paper also discusses the role of technology, and financial tools in improving working capital, management processes Keywords: Motaal’s Comprehensive Test , Working Capital , Current Ratio , Working Capital Turnover Ratio , Net profit to Current Assets
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