Working capital management is about maintaining smooth operations and can also help in improving the company's earnings and profitability. Management of working capital involves inventory management and management of accounts receivables and accounts payables. Objective of Working Capital: Working capital management includes maintaining the working capital operating cycle and ensuring its ordered operation, reducing the cost of capital spent on the working capital, and boosting the return investments on the current asset. Importance of Working Capital Inventory: The needs for working capital inventory differ from industry to industry. In fact, they can be different among similar companies. There ar...