Working Capital Management refers to the process of managing a company's short-term assets and liabilities to ensure it can continue its operations and meet its financial obligations. It involves monitoring cash flow, inventory, accounts receivable, and accounts payable to maintain sufficient liquidity. Effective Working Capital Management helps businesses optimize their operational efficiency and reduce costs. By balancing current assets and liabilities, companies can avoid cash shortages, improve profitability, and support growth initiatives. This management is crucial for maintaining a healthy financial position and ensuring long-term sustainability.