Question

Describe the basic corporate finance framework of working capital management.

Answer 1

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☃️ Working capital management aims at more efficient use of a company's resources. The working capital ratio or current ratio is calculated as current assets divided by current liabilities. It is a key indicator of a company's financial health as it demonstrates its ability to meet its short-term financial obligations .

Answer 2

Working capital management aims at more efficient use of a company's resources. The working capital ratio or current ratio is calculated as current assets divided by current liabilities. It is a key indicator of a company's financial health as it demonstrates its ability to meet its short-term financial obligations .

Explanation:

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