The Small Company's Big Guide to Working Capital

Learn how other companies are managing working capital


Learn how other companies are managing working capital and find out how you can improve your company’s status quo.

In the wake of the Recession, many companies have quickly loosened the grip on their management of working capital. The Recession-driven improvements they fought for in DSO (days sales outstanding), DIO (days inventory outstanding) and DPO (days payables outstanding) were a mere blip in time.

This is unfortunate, as working capital management is one of the best measures of a company’s financial performance. With more working capital in hand, companies can pay off their debt obligations, upping net margins to the pleasure of shareholders. They can reserve this cash to invest in acquisitions when the economy improves, release it to shareholders as dividends, buy back shares or provide it to R&D to develop tomorrow’s products. Most of all, working capital management demonstrates that there are stringent controls in place to keep costs down, a little money here and there that soon adds up into a nice pile.

Working capital management is extremely important to a business as it determines a firm’s overall cash position. And for smaller businesses that may not always have as much capital on hand, the need to stay liquid is especially vital. Learn more about how your growing company can use working capital strategies to gain an advantage in this economy.

Topics in this CFO eBook include:

  • How the CFO can uniquely drive excellent working capital habits for their company;
  • The benefits of having a negative working capital balance;
  • How to resist extended payment terms with large-company customers;
  • Opportunities to develop and improve relationships with your lenders;
  • Unique working capital issues that can arise when working with overseas partners;
  • Working-capital management strategies that have worked for other companies—and why they might help yours.

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