mmurugeshraj
New member
The ability of a company to fund and manage the gap between short term
liabilities and short term assets define working capital management. In
practical, working capital management is a vulnerable spot for most of
the CFOs. They are slogging number of hours to find the optimum level
of working capital and the key drivers for it. The question revolves
around a catch-22 of minimum risk and maximum uncertain handling.
The mantra lies in understanding and sensing the greatest challenge in
working capital management is to understand and sense the factors that
are out of its direct control. Most of the companies are trying to
understand how these factors fit in the equation of the internal variables.
Quantification of these factors is hard but its true even that what you
can measure, you can’t manage. To work out these an organization
should consider; occurrence of factor, its intensity and probability.
liabilities and short term assets define working capital management. In
practical, working capital management is a vulnerable spot for most of
the CFOs. They are slogging number of hours to find the optimum level
of working capital and the key drivers for it. The question revolves
around a catch-22 of minimum risk and maximum uncertain handling.
The mantra lies in understanding and sensing the greatest challenge in
working capital management is to understand and sense the factors that
are out of its direct control. Most of the companies are trying to
understand how these factors fit in the equation of the internal variables.
Quantification of these factors is hard but its true even that what you
can measure, you can’t manage. To work out these an organization
should consider; occurrence of factor, its intensity and probability.