The need for working capital management vary from industry to industry, and they can even vary among similar companies. This is due to several factors, including differences in collection and payment...

The need for working capital management vary from industry to industry, and they can even vary among similar companies. This is due to several factors, including differences in collection and payment policies, the timing of asset purchases, the likelihood of a company writing off some of its past-due accounts receivable, and in some instances, capital-raising efforts a company is undertaking.

Proper management of working capital is essential to a company’s fundamental financial health and operational success as a business. Critically analyse this statement with practical example.