How to Improve Working Capital Metrics?

Improving working capital metrics involves optimizing inventory management by reducing excess stock and enhancing turnover rates, ensuring timely collection of accounts receivable to boost cash flow, and negotiating better payment terms with suppliers to extend payables without harming relationships. Additionally, implementing efficient budgeting and forecasting practices can provide better insights into cash needs, allowing businesses to maintain healthy working capital levels. Regularly reviewing financial statements will help identify areas for improvement and inform strategic decisions.