What is the correlation between working-capital management and maximizing shareholder wealth?© BrainMass Inc. brainmass.com November 30, 2021, 1:04 am ad1c9bdddf
Working capital is the firm's total current assets used in operations.
Working capital = total current assets
These current assets include cash, marketable securities, prepaid expenses, accounts receivable, inventory, and other current assets. Working capital represents the liquid portion of the firm.
Net Working Capital means the difference between current assets and current liabilities, and therefore, ...
This discusses the correlation between working-capital management and maximizing shareholder wealth in 236 words.