Page 129 - Microsoft Word - 00 ACCA F9 IWB prelims 2017.docx
P. 129

Working capital management






                           Overview







                  Objectives of                     Elements of                        Working

                      working                    working capital                        capital
                       capital                                                      management


                  management                                                           policies



                   Profitability vs             WORKING CAPITAL                       Aggressive v

                       liquidity                   MANAGEMENT                        conservative v
                                                                                        balanced






                                                                               Working capital
                   Working capital               Cash operating
                          ratios                         cycle                     investment
                                                                                       levels


































                                                                                                      121
   124   125   126   127   128   129   130   131   132   133   134