The Purpose of Working Capital Management for Companies

Working capital has a very important meaning for a company's operations. While working capital management also has certain objectives to be achieved. Therefore, every company is trying to meet the needs of working capital, in order to increase liquidity. For this reason, the following are the objectives of working capital management for the company

1. With sufficient working capital the company has the ability to fulfill obligations on time

2. Allows the company to provide credit terms that attract customer interest, with the capabilities it has

3. To meet the company's liquidity needs

4. Enabling companies to have sufficient preparations in order to meet the needs of their customers

5. Protect yourself in the event of a working capital crisis due to a decrease in the value of current assets

6. Allows the company to obtain additional funds from creditors, if the financial ratios meet the requirements

7. To maximize the use of current assets to increase sales and profits

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