Analysis of working capital optimization and financing solutions of corporates
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| Format: | Thesis |
| Kulcsszavak: | corporates financing liquidity optimization working capital |
| Online Access: | http://dolgozattar.uni-bge.hu/38748 |
| Abstract: | Working capital, being the necessary capital for the day-to-day operation of corporations plays an inevitable role in business life. Due to the COVID-19 pandemic, the working capital need significantly increased globally, shouting for immediate intervention and solution. My purpose was to investigate and analyze the working capital optimization and financing solutions for corporates to provide an effective set of tools that CEOs and CFOs can take advantage of. I collected information from different sources with techniques of secondary research and personal interviews. The practical application of theoretical knowledge was of utmost importance for me, so I conducted personal interviews with professionals of K&H Bank. My research revealed that corporate leaders can choose from several working capital optimization and financing solutions with which they can reduce the company’s cash conversion cycle, release trapped cash and secure a balanced and adequate working capital level. I also came to the conclusion that there is a strong correlation between working capital and liquidity since a sufficient amount of working capital secures a healthy liquidity position for corporations. Digitalization and AI will create applications that assist executives and CFOs to manage the working capital need of the company in a convenient way providing an immediate solution. |
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