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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.
This is also referred to as measuring. efficient use of the factors of production. For example, the productivity of a farmer (labor) increases with the use of a tractor (capital). Investing in human capital is one way to increase. productivity.