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What is 'Working Capital Management'. Working capital management refers to a company's managerial accounting strategy designed to monitor and utilize the two components of working capital, current assets and current liabilities, to ensure the most financially efficient operation of the company.
DEFINITION of 'Working Capital'. Working Capital is a measure of both a company's efficiency and its short-term financial health. Working capital is calculated as: Working Capital = Current Assets-Current Liabilities.The working capital ratio (Current Assets/Current Liabilities) indicates whether a company has enough short term assets to cover ...EFINITION of 'Working Capital'. Working Capital is a measure of both a company's efficiency and its short-term financial health. Working capital is calculated as: Working Capital = Current Assets-Current Liabilities.