Working Capital and Creating a Culture That Respects Cash
Many companies do not give the right amount of attention to working capital management.
Most financial managers believe that developing a fundraising strategy based on an optimal capital structure following classical economic parameters is sufficient. The truth is these executives do not:
- implement metrics focused on working capital,
- employ the controls necessary for effective working capital management,
- or build a real culture of “cash” among the different departments of the company.