What is capital management?

Capital management is a process that companies use to maximize their investments and manage the risks associated with those investments. It involves analyzing the company's capital structure, managing capital resources, and determining how to allocate capital in order to maximize returns.

Capital management is typically a combination of budgeting, forecasting, cash flow management, debt management, and risk management. It is designed to ensure that organizations have sufficient funds available to meet their financial obligations in a timely manner while minimizing the amount of lost revenue due to delays or mismanagement of capital. Capital management also includes activities such as investing in new ventures, liquidating assets, and raising equity financing.