Publication Details
Abstract
In order to run their operations and reach their goals, businesses of all sizes rely on financial resources. Money is so crucial in modern business that it is often referred to as the "lifeblood" of a company. No business can achieve its goals without sufficient funding. Therefore, this project is about researching the many facets of working capital management that are critical for running the business on a daily basis. Two major issues arise when the company manages its working capital: We must first determine the ideal levels of cash, accounts receivable, and inventory for a company to keep on hand, taking into account the sales level and pertinent cost factors. A second question is how to most economically fund these working capital investments, given these ideal amounts. Firms should finance with the cheapest accessible sources of capital and should not hold any unproductive assets if they want to achieve the greatest possible results. Why? Generally speaking, investing in short-term assets and financing short-term liabilities are highly beneficial for the firm. Both before and during the research, the study's scope is defined. Practical application of the study's theoretical aspects into real-world work experience was the primary aim of the research. Working capital research relies on ratio analysis and working capital statement of changes as its foundational tools.