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Understanding Working Capital Management for Businesses

A practical, India-specific introduction to working capital, built for founders, treasury teams, HR and L&D professionals, and employees outside finance whose everyday decisions lock up or release a company's money. Learn to read the working capital lines on a balance sheet, tell gross, net and operating working capital apart, and calculate liquidity ratios and the working capital cycle step by step. See why FMCG, retail, capital goods, pharma and IT companies look so different, and track real trends on screener.in. Understand working capital policy, permanent vs temporary needs, and how to estimate requirement. Get hands-on with credit policy, receivables ageing, EOQ and ABC analysis, supplier terms and the MSME 45-day payment rule. Learn how Indian banks set drawing power, how cash credit, WCDL, commercial paper, factoring and TReDS compare, and finish by linking working capital to growth and valuation, spotting red flags, and fixing a working capital crunch in a case study.

MODULES

7

DURATION

~4.1 hrs

TRACK

Corporate Finance

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: What Working Capital Really Is

3 Lessons

Why Working Capital Decides Whether a Business Survives9 min read

Current Assets and Current Liabilities: Reading the Working Capital Lines on a Balance Sheet11 min read

Gross, Net and Operating Working Capital: Which Number Actually Matters10 min read

Chapter 2: Measuring Working Capital Health

4 Lessons

Liquidity Ratios: Current Ratio, Quick Ratio and Their Limits10 min read

The Working Capital Cycle: Inventory, Receivable and Payable Days Calculated Step by Step13 min read

Working Capital Across Industries: FMCG, Retail, Capital Goods, Pharma and IT11 min read

Tracking a Company's Working Capital Trend on screener.in10 min read

Chapter 3: Working Capital Policy and Requirement

3 Lessons

Aggressive, Conservative or Moderate: Choosing a Working Capital Policy10 min read

Permanent vs Temporary Working Capital and How to Fund Each10 min read

Estimating How Much Working Capital a Business Needs13 min read

Chapter 4: Managing Receivables and Inventory

3 Lessons

Credit Policy: Deciding Who Gets Credit, How Much and For How Long11 min read

Receivables Ageing, Collections and Bad Debt Control11 min read

Inventory Management Tools: EOQ, Reorder Levels and ABC Analysis13 min read

Chapter 5: Managing Payables

2 Lessons

Supplier Terms, Early Payment Discounts and the Real Cost of Trade Credit11 min read

The MSME 45-Day Payment Rule and What It Means for Buyers10 min read

Chapter 6: Financing Working Capital in India

3 Lessons

How Banks Set Working Capital Limits: Drawing Power, Margin and Stock Statements12 min read

Cash Credit, Overdraft, WCDL and Commercial Paper Compared11 min read

Receivables Financing and Supply Chain Finance: Factoring, Invoice Discounting and TReDS12 min read

Chapter 7: Working Capital in Practice

4 Lessons

How Sales, Procurement and Operations Decisions Lock Up Working Capital10 min read

How Working Capital Affects Profitability, Growth and Valuation11 min read

Working Capital Red Flags: Ballooning Receivables, Channel Stuffing and Stretched Payables11 min read

Case Study: Fixing a Working Capital Crunch in an Indian Manufacturer14 min read