Working Capital Management Essay Example | Topics and Well Written Essays - 3750 words

Working with child(p) Management - Essay ExampleThe paper tells that working capital for any firm is defined as the amount of money or current assets required by an organization for its everyday running. Liquidity in a business ensures that it remains solvent and that all its operations can be successfully undertaken. Cash, therefore, is a crucial part of the survival of any business organization. For this reason, sound financial management policies are paramount to the success of any business. Working capital management in any case involves providing finances for investment in the condensed term assets that are essential for the day to day running of the organization. They include reserve for unexpected costs, pre remunerative costs analogous operate licenses and insurance policies. Cyclic or seasonal financial needs should also be met. A clear example is the excessive spending of credit card holders during festive seasons like Christmas, where the banks experience an increas e in lending. Good financial management will ensure that the banks can transmit as much money as possible. There is also a delicate balance amid too much solvency and profit maximization of an institution. Citibank, the principal operating subsidiary of Citicorp are among the biggest financial institutions in the world. Citibank has many international branches especially in south East Asia. In 1983, Citibanks country animal trainer for Indonesia, Melhi Mistri, was faced with the task of increasing profitability while managing the banks operating capital in line with reviews of its operating budget. He also had the mome