The Impact Of Working Capital Management A study Of UBER Financial Summary
Uber is an on demand transportation service which has brought a revolution in the taxi industry all across the world. The business model has made it possible for people to simply tap their smartphone and have a cab arrive at their location in the minimum possible time, leaving a lot of budding startups yearning for an App like Uber and wondering how Uber works. Uber is one of those few tech companies in the world that has been valued over $70 Billion. Uber has already received an equity funding of $22.2B and is present in 633 cities worldwide. These facts surely show the trust of investors in the business model and make it easy for us to imagine how much revenue will the organisation be making once it attains liquidity.
The prevailing economics situation is a resulting largely from extensive mismanagement of the country; resources have made issues of management, one of the paramount importance in the business world where the financial organization sector has a pervasive influence: the management of working capital cannot be overemphasized.
Working capital management can be said to the life blood for the sustenance of any organization the study of financial organization is incomplete without an in-depth, thoroughly and critical analysis of techniques of its working capital management.
Working capital is concerned with:
- Financial of working capital component
- Investment in asset
- Usage of working capital
It is the art of science of planning organization directing, controlling and utilization of working capital component as well as determines the appropriates mix of working capital management. It can also defined as that aspect of managerial finance or management accounting, which is concerned with the activities involved in sourcing financing and investing in the components of working capital.
In managing working capital, companies separate current execution into their component units for policy formulation and execution. This is because are of different nature, which makes it imperative that they will be considered and managed under a unique appropriate