Define the working capital management. Why is it important to study the management of working capital as a separate area in financial management?

Working capital management refers to the process of managing a company's short-term assets and liabilities to ensure that it can continue its day-to-day operations smoothly while maintaining a balance between profitability and liquidity. It involves the management of current assets such as cash, receivables, and inventories, as well as current liabilities like accounts payable and short-term debt. The main goal of working capital management is to ensure that a company has sufficient cash flow to meet its short-term obligations and operating expenses while minimizing the cost of maintaining these assets.

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