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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.
Working capital is the difference between the current assets and the current liabilities. It is the amount invested by the promoters on the current assets of the organisation.ecisions relating to working capital and short-term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities.