Executive Summary
- Working capital (also known as net working capital) is a financial metric that measures a company’s operating liquidity.
- Working capital is defined as current assets minus current liabilities. A positive position means that a company is able to support its day-to-day operations—i.e., to serve both maturing short-term debt and upcoming operational expenses.
- One of the metric’s shortcomings, however, is that current assets often cannot be liquidated in the short term. High working capital positions often indicate that there is too much money tied up in accounts receivable and inventory, rather than short-term liquidity.
- All companies should therefore focus on the tight management of working capital. Inventory, accounts receivable, and accounts payable are of specific importance since they can be influenced most directly by operational management.
- Companies that improve their working capital management are able to free up cash and thus can, for example, reduce their dependence on outside funding, or finance additional growth projects.
- If done right, working capital management generates cash for growth together with streamlined processes along the value chain and lower costs.

More:
www.qfinance.com/cash-flow-management-best-practice/best-practice-working-capital-management-techniques-for-optimizing-inventories-receivables-and-payables

FY360° by Finyear, la revue de presse à 360° en finance et gestion d'entreprise.

FY360° by Finyear (précédemment Financial Year Links) est un service Finyear dont la mission est de vous faire gagner du temps et de vous tenir informés. Notre équipe suit les actus pertinentes, les organise, créé un lien vers les sources originales et vous les communique sur le site Finyear et dans la newsletter quotidienne.
FY360° by Finyear n'est pas un produit fini : faites-nous savoir ce que vous en pensez et si vous avez une suggestion, une remarque, ou une source que nous devrions suivre, écrivez-nous.

FY360° by Finyear (ex Financial Year Links) is a Finyear service on a mission to save you time and keep you smart. Our team follows the relevant news, summarize it, link to the original sources and deliver it on the Finyear website and in the daily newsletter.
FY360° by Finyear is not a finished product: please let us know what you think and if you have a suggestion, a complaint, or something we should link to, email us.

Les médias du groupe Finyear

Lisez gratuitement chaque jour (5j/7) le quotidien Finyear.
Recevez chaque matin par mail la newsletter Finyear, une sélection quotidienne des meilleures infos et expertises de la finance d’entreprise.
Lien direct pour vous abonner : www.finyear.com/abonnement

Lisez gratuitement chaque mois :
- le magazine digital Finyear sur www.finyear.com/magazine
- la lettre digitale "Le Directeur Financier" sur www.finyear.com/ledirecteurfinancier
- la lettre digitale "Le Trésorier" sur www.finyear.com/letresorier
- la lettre digitale "Le Credit Manager" sur www.finyear.com/lecreditmanager
- la lettre digitale "Le Capital Investisseur" sur www.finyear.com/lecapitalinvestisseur
- la lettre digitale "Le Contrôleur de Gestion" (PROJET 2014) sur www.finyear.com/lecontroleurdegestion
- la lettre digitale "Le Risk Manager" (PROJET 2014) sur www.finyear.com/leriskmanager

Un seul formulaire d'abonnement pour 7 lettres