Description
Provide some examples of working capital management and explain how they are involved with a firm’s asset-investment decisions regarding capital management. Using those examples, explain steps that management can take to manage working capital more efficiently. Why are these concepts important to business leaders in Saudi Arabia and Saudi Vision 2030?
Search the international library or the internet for an academic or industry-related article. Select an article that regarding working capital management, and how it impacts business decisions in Saudi Arabia.
Direction:
For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate).
For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs.
Be sure to support your statements with logic and argument
citing all sources referenced and inside the text.
APA style
6-8 paragraphs including ( introduction - body - conclusion )
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Explanation & Answer
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Kindly have a look, I am available for any edits
Running head: WORKING CAPITAL MANAGEMENT
Working Capital Management
Institution Affiliation
Date
1
2
WORKING CAPITAL MANAGEMENT
Introduction
Working capital management is a company’s managerial accounting strategy that a
company has in place to monitor an also to utilize the current liabilities and current assets. Working
capital management helps in making sure that a company’s operations are running smoothly. The
company is able to have a sufficient cash flow that helps it to achieve its short-term operating costs
and also its short-term debt obligations. The process of working capital management involves
conducting a ratio analysis of liabilities, assets and cash flow. According to EduPristine (2019),
bankers, investors, and creditors have in past considered the working capital to be very important,
this is mainly because it shows the health of an organization.
Summary of the Article (Discussion Post)
The article looks into the importance of working capital management on the profitability
of companies in Saudi Arabia and specifically agriculture and food companies. According to the
author, working capital is important since it affects the productivity of a firm directly. Mainly
because it takes into consideration the trade-off between risk and return. The company is able to
make a decision knowing whether they will yield high returns or not. The authors illustrate why
working capital management is important in companies. One is that it helps when it comes to
making informed financial decisions. Companies can be able to have sustainable profitability by
understanding the components of working capital.
The main components of working capital management are the current assets and liabilities.
The current ratio analysis is the most important liquidity me...
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