• M.Devi
• Dr.S.Parithi

Financial Management is that managerial activity which is concerned with the planning and controlling of the firm’s financial resources. A company’s working capital essentially consists of current assets and current liabilities. Current assets refer to those assets that can be converted into cash within one year, like debtors, and stock and prepaid expenses- expenses that have already been paid for. Thus, working capital management refers to monitoring these two components or the short-term liquidity of your firm. Structuring an effective working capital management is a great way to enhance the income. Ratio analysis and management of individual components of working capital are two primary importance of working capital management. There are several techniques to delay payment of accounts payable namely (1) avoidance of early payments; (2) centralized disbursements; (3) floats; (4) accruals. This importance of working capital management will assist you in maintaining optimum inventory level. Also, you can build your strategies and techniques to clear aged inventories, improve working capital, generate cash and much more. Your steps towards significance of working capital management will definitely improve your brand loyalty as well as profitability for your organization.

Working capital Management, Financial Management,Capital

"IMPORTANCE OF WORKING CAPITAL MANAGEMENT", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.342-347, June 2019, Available :http://www.jetir.org/papers/JETIR1907647.pdf

"IMPORTANCE OF WORKING CAPITAL MANAGEMENT", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp342-347, June 2019, Available at : http://www.jetir.org/papers/JETIR1907647.pdf