Significance of Working Capital Management In a typical manufacturing firm, current assets exceed one-half of total assets Excessive levels can result in a substandard Return on Investment(Rol) Current liabilities are the principal source of external financing for small firms Requires continuous, day-to-day managerial supervision Working capital management affects the company' s risk, return, and share price 8-48-4 Significance of Working Capital Management In a typical manufacturing firm, current assets exceed one-half of total assets. Excessive levels can result in a substandard Return on Investment (ROI). Current liabilities are the principal source of external financing for small firms. Requires continuous, day-to-day managerial supervision. Working capital management affects the company’s risk, return, and share price