CORE CONCEPTS OF MANAGEMENT
MARKETING MANAGEMENT
FINANCIAL MANAGEMENT
HUMAN RESOURCES MANAGEMENT
OPERATIONS & PRODUCTION MANAGEMENT

Management of Working Capital
Capital Budgeting (FM/AF02) concerned itself with evaluation of returns from long term assets. In this lesson, the author, Prof. Premchander of IIMB, deals with the budgeting of short term assets (also see FM/AC1 thro’ FM/AC3). This is what is popularly known as Working Capital Management (WCM). Capital Budgeting is for the strategist. WCM is more for the tactician. In reality this is the hub of all business activity. Is there a permanent component of working capital? How does one deal with variability factors? How does one create shareholder value while coping with liquidity and risk reduction? Aggressive and conservative policies, Flows and Pools, the Pipeline Theory and the ubiquitous Operating Cycle. Working capital also provides its own leverage.
FM/AF03

24 Mins

23 Mins

55 Pages
Equivalent classroom time: 10hrs