Bus 650 assignment–management of working capital case study:
Your working capital practices involve careful analysis of all incoming and outgoing cash flows to ensure that you have sufficient funds available for day-to-day operations.
You utilize a variety of capital budgeting analysis techniques, such as discounted cash flow, net present value, internal rate of return, payback period, and profitability index in order to identify potential investments with the highest returns on investment.
Additionally, you regularly assess liquidity ratios such as quick or acid test ratio and current asset turnover in order to make sure that your business has enough short term resources available at all times.