The process of overseeing and controlling the financial resources of a company to ensure optimal utilization and growth. It involves strategic planning, budgeting, investment decisions, and risk management to achieve the organization's financial goals.

Effective capital management is essential for the long-term success and sustainability of a business. By efficiently managing capital, companies can improve profitability, increase shareholder value, and maintain a competitive edge in the market.

Key components of capital management include analyzing cash flow, monitoring liquidity, evaluating investment opportunities, and managing debt levels. By carefully balancing these factors, companies can make informed decisions that support their overall financial health and growth objectives.

In conclusion, capital management plays a crucial role in the financial management of a company. By implementing sound capital management practices, businesses can enhance their financial performance and position themselves for long-term success.