Working Capital

It is well known that working capital optimisation and control are important and if funding and cash are in short supply it is even more important.

At one level working capital is fairly straight forward. Nonetheless by working through this CPD quiz, including the narrative contained in the answers, it may give you a chance to think more deeply about the dynamics of your group’s working capital. Working capital in different types of business will automatically display different sensitivities to changes in sales volumes which affect the need for funding and indeed the riskiness that working capital presents to lenders.