S/F/96. 'A business can be profitable, and yet experience serious cash flow problems: the key is the length of the working capital cycle' (Voi Thainh Danh)

The paper examines the keys to successful working capital (WC) management focusing on the balance between profitability and liquidity. Both concepts are defined and illustrated with examples; the objectives of cash management are identified; the operating cycle of WC is described highlighting the necessary elements of its effective management.