Working capital management - Revision history

Doug: Improve linking.

2025-06-18T16:13:11Z

Improve linking.

2022-11-17T19:17:39Z

Add link.

2022-08-04T09:01:20Z

Remove surplus link.

2022-08-04T08:56:04Z

Add link.

2022-06-27T20:25:02Z

Classify page.

← Older revision		Revision as of 20:25, 27 June 2022
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	===Other ~~links=~~==		==Other resources==
	[[Media:Oct14TTtreasuryessentials46.pdf \|The cash conversion cycle, The Treasurer, Oct 2014]]		[[Media:Oct14TTtreasuryessentials46.pdf \|The cash conversion cycle, The Treasurer, Oct 2014]]

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	[https://www.treasurers.org/node/9240 Extending accounts payable is seen as vital, The Treasurer, Web exclusive]		[https://www.treasurers.org/node/9240 Extending accounts payable is seen as vital, The Treasurer, Web exclusive]

			[[Category:The_business_context]]

2019-12-04T10:57:57Z

Add link.

2019-11-20T14:20:18Z

Layout.

← Older revision		Revision as of 14:20, 20 November 2019
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	As a result, the management of working capital is essentially a compromise between levels high enough for smooth commercial operation and safeguarding reputation, and levels low enough to be financially efficient.		As a result, the management of working capital is essentially a compromise between levels high enough for smooth commercial operation and safeguarding reputation, and levels low enough to be financially efficient.

2019-11-20T14:19:56Z

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2019-11-20T14:19:11Z

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 (WCM).
-[[Working capital]] operates as a continuous cycle.
+Working capital operates as a continuous cycle.
 At its simplest, a creditor provides stock, the stock is then sold on credit, creating a debtor.
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 As a result, the management of working capital is essentially a compromise between levels high enough for smooth commercial operation and safeguarding reputation, and levels low enough to be financially efficient.

2019-11-20T09:29:07Z

Incorporate reputational dimension.

← Older revision		Revision as of 09:29, 20 November 2019
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	Firms can increase their financial efficiency by minimising the length of time this cycle takes. A firm that reduces its [[working capital cycle]] will reduce its working capital levels.		Firms can increase their financial efficiency by minimising the length of time this cycle takes.

			A firm that reduces its working capital cycle will reduce its working capital levels.


	However, there are practical, operational and commercial limitations on how low working capital levels can fall without adversely affecting operations and relationships.		However, there are practical, operational and commercial limitations on how low working capital levels can fall without adversely affecting operations and relationships.

	As a result, the management of working capital is essentially a compromise between levels high enough for smooth commercial operation and levels low enough to be financially efficient.		As a result, the management of working capital is essentially a compromise between levels high enough for smooth commercial operation and safeguarding reputation, and levels low enough to be financially efficient.


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	* [[CertICM]]		* [[CertICM]]
	* [[Lock-up]]		* [[Lock-up]]
			* [[Reputational risk]]
	* [[Working capital]]		* [[Working capital]]
			* [[Working capital cycle]]