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Finance
Working Capital Management
How a company handles its short-term assets and liabilities to make sure it always has enough cash to run day-to-day operations.
Good working capital management improves cash flow, reduces the need for loans, and can even become a competitive advantage. It involves managing inventory, receivables, and payables carefully.
It's making sure the fridge is never empty while still not wasting money on food that goes bad.
Real world: Amazon is famous for excellent working capital management — it collects customer money instantly but pays suppliers 60-90 days later, so it basically runs on other people’s money.
💡 Strong working capital management is what keeps a business alive even when sales are slow.