A Study On Comparison About Working Capital Management Of State Bank Of India And Industrial Credit And Investement Corporation Of India

Think India ◽  
2019 ◽  
Vol 22 (2) ◽  
pp. 251-276
Author(s):  
S. DEVI ◽  
R.POORNIMA RANI
Keyword(s):  
Main Theme ◽  
Managerial Accounting ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Efficient Operation ◽  
Working Capital Management ◽  
Satisfactory Level ◽  
Current Asset

Working capital management refers to a company's managerial accounting strategy designed to monitor and utilize the two components of working capital, current assets and current liabilities, to ensure the most financially efficient operation of the company. The goal of working capital management is to manage the firm’s current asset and current liabilities in such a way that satisfactory level of working capital is maintained. A study on comparison in working capital management with State Bank of India and Industrial Credit and Investment Corporation of India is analyzed to know the liquidity and current ratio. The interaction between current asset and current liabilities is therefore is the main theme of the theory of working capital management.

scholarly journals WORKING CAPITAL MANAGEMENT OF TRADE ENTERPRISES FROM THE POSITION OF FUNCTIONAL AND REFLECTING AND STRUCTURAL AND CLASSIFICATION APPROACHES

2019 ◽  
pp. 68-77
Author(s):  
Oksana Blуznіuk ◽  
Alona Sifurova
Keyword(s):  
Asset Management ◽  
Financial Stability ◽  
Retail Trade ◽  
Enterprise Management ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Current Asset ◽  
Reproduction Process ◽  
Operational Activities

Introduction. The article proves the necessity of improving the overall system of enterprise trade management by developing an efficient subsystem of working capital management in the unity and interconnection with other subsystems and elements. It has to be done in the context of the successive stages of the transformation and reproduction and financial and economic cycle of the operation of a trading enterprise. Purpose. The article aims to substantiate the content and mechanism of the subsystem of current asset management of the trade enterprise on the basis of the use of functional and reproductive and structural and classification approaches. Method. According to the State Statistics Service of Ukraine, the analysis of the dynamics and structure of the volume and structure of financial sources of capital and assets of Ukrainian trade enterprises during 2010-2017 is carried out. It is revealed that the vast majority of domestic enterprises of wholesale and retail trade suffer from a sharp shortage of own funds for the formation of working capital, which is a source of financing of constituent elements of current assets. It significantly affects the level of financial stability, independence and efficiency of financial and economic activity of trade enterprises. Results. The scientific approaches to enterprise management organization based on a systematic approach have been considered and systematized. The effect of modern mechanism of working capital management as an important element of the overall system of management of the trade company has been investigated, taking into account the high proportion of borrowed funds in the structure of sources of financial resources and the significant impact of working capital on the financial performance of trade enterprises. The essence, functions, principles, features, the mechanism of application of functional and reproductive and structural and classification approaches to the management of working capital of trading enterprises in separate successive stages of the reproduction process have been determined. It has been substantiated the expediency of using new approaches to management with the purpose of activating the processes of formation of working capital from diversified financial sources, its investment in current assets, increase of efficiency of use in operational activities and reproduction on a capitalized basis in trade enterprises.

scholarly journals Efficiency of Working Capital Management and Profitability: Evidence from Manufacturing Firms of Nepal

2019 ◽  
Vol 22 (1) ◽  
pp. 21-34
Author(s):  
Pitambar Lamichhane
Keyword(s):  
Comparative Research ◽  
Manufacturing Firms ◽  
Fiscal Year ◽  
Regression Result ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Working Capital Management ◽  
Explanatory Variables ◽  
Dependent Variables

This paper analyzes efficiency of working capital management (EWCM) and its influence on profitability of manufacturing firms in Nepal for the fiscal year 2005/06 to 2017/18 using descriptive and causal comparative research design. Net trade cycle (NTC) is used to measure EWCM. Profitability on assets (PA) and profitability on sales (PS) are dependent variables of this study. The EWCM related variables such as Net trading cycle (NTC), current ratio (CR) and debt to assets ratio (DR) are considered as explanatory variables. Result of this paper reveals both profitability on assets and profitability on sales are inversely related with NTC which implies that lower NTC increases profitability of manufacturing firms in Nepal. Further, regression result of this paper confirms that debt to assets ratio has negative and statistically significant effect on profitability on total assets and profitability on sales. The finding of this paper concludes that less uses of debt increases the profitability of manufacturing firms in Nepal.

scholarly journals Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana

2017 ◽  
Vol 64 (2) ◽  
pp. 255-269 ◽  
Author(s):  
Anokye M. Adam ◽  
Edward Quansah ◽  
Seyram Kawor
Keyword(s):  
Stock Exchange ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Financing Policies ◽  
Current Asset ◽  
Investment And Financing ◽  
Management Policies ◽  
Ghana Stock Exchange

Abstract This study sought to determine the effects aggressive/conservative current asset investment and financing policies have on firms′ return for six manufacturing firms listed at Ghana Stock Exchange for a period of 2000-2013. Data were obtained from the annual reports of the firms and the Ghana Stock Exchange. The study adopted longitudinal explanatory non-experimental research design applied to dynamic panel ARDL framework in analyzing the data. The results revealed that the current asset investment and financing policies have highly significant positive effects on returns to equity holders in the long-run. The empirical evidence suggests that conservative current asset investment policies increase firms return while conservative financing policies yields negative returns. The study therefore would enable finance managers to be able to fashion out the appropriate working capital management policies. A firm pursuing conservative current asset investment policy should balance it with aggressive current asset financing policy in order to enhance profitability and create value for their investors.

scholarly journals Pengaruh Manajemen Modal Kerja Terhadap Profitabilitas (Studi Empiris Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia)

2012 ◽  
Vol 4 (1) ◽  
pp. 35
Author(s):  
Ika Permatasari ◽  
Dian Puspitasari
Keyword(s):  
Logistic Regression ◽  
Cash Flow ◽  
Stock Exchange ◽  
Value Added ◽  
Flow Ratio ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Working Capital Management ◽  
Equity Ratio

AbstractThis research aims to analyze the affect between working capital management as measured by current ratio (CR), cash flow ratio (CFR), and debt to equity ratio (DER) to profitability as measured by value added (VA). The sample used was manufacturing company listed on Indonesia Stock Exchange period 2009-2011. The analysisis using logistic regression. The results show thatcurrent ratio had negativeeffect on the profitability and cash flow ratio had positiveeffect on the profitabilityratio. However, debt to equity ratio had no effect on profitability.

scholarly journals Working Capital Management (WCM) and Firm Performance in Emerging Markets: A Case of Bangladesh

2021 ◽  
Vol 10 (1) ◽  
pp. 36
Author(s):  
Rafiqul Bhuyan ◽  
Mohammad Sogir Hossain Khandoker ◽  
Noshin Tasneem ◽  
Mahjuja Taznin
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Total Asset ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Current Asset ◽  
The Impact

We examine the impact of efficient working capital management on market value and profitability. Using secondary data on selected firms from Dhaka Stock Exchange we explore the effects of various working capital components (i.e. cash conversion cycle (CCC), current ratio (CR), current asset to total asset ratio (CATAR), current liabilities to total asset ratio (CLTAR), debt to asset ratio (DTAR), siz,e and growth) to the firm’s performance by looking firm’s value i.e. Tobin’s Q (TQ) and profitability i.e. return on asset (ROA) and return on invested capital (ROIC). Our results show that, for both food and overall manufacturing sectors, there is a significant association between working capital variables and firm’s value & return on assets, but an insignificant association with return on invested capital.

scholarly journals Working Capital Management in Ancillary’s of BHEL, Tiruchirappalli, Tamil Nadu

2018 ◽  
Vol 7 (3) ◽  
pp. 14-17
Author(s):  
D. Muthusamy ◽  
M. Sathish Kumar
Keyword(s):  
Tamil Nadu ◽  
Raw Materials ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Book Value ◽  
Current Asset ◽  
Time Gap ◽  
The Difference

The amount of profit largely depends on the magnitude of sales. However sales do not converted into cash instantaneously in this concern. There is always a time gap between the sales of goods and receipt of cash. Working capital is required for this period in order to sustain the conversion activity. In case adequate working capital is not available for the period, the company will not be in a position to sustain the sales since it may not be in a position to purchase raw materials, payment of wages and other operating expenses that required for manufacturing the goods that to be sold. It is a descriptive that capital which is to consider the difference between book value of current asset and current liabilities. This study has to analysis the working capital management in ancillary units of BHEL.

scholarly journals Efficiency of Working Capital Management and Profitability: Evidence from Manufacturing Firms of Nepal

2019 ◽  
Vol 22 (2) ◽  
pp. 21-34
Author(s):  
Pitambar Lamichhane
Keyword(s):  
Comparative Research ◽  
Manufacturing Firms ◽  
Fiscal Year ◽  
Regression Result ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Working Capital Management ◽  
Explanatory Variables ◽  
Dependent Variables

This paper analyzes efficiency of working capital management (EWCM) and its influence on profitability of manufacturing firms in Nepal for the fiscal year 2005/06 to 2017/18 using descriptive and causal comparative research design. Net trade cycle (NTC) is used to measure EWCM. Profitability on assets (PA) and profitability on sales (PS) are dependent variables of this study. The EWCM related variables such as Net trading cycle (NTC), current ratio (CR) and debt to assets ratio (DR) are considered as explanatory variables. Result of this paper reveals both profitability on assets and profitability on sales are inversely related with NTC which implies that lower NTC increases profitability of manufacturing firms in Nepal. Further, regression result of this paper confirms that debt to assets ratio has negative and statistically significant effect on profitability on total assets and profitability on sales. The finding of this paper concludes that less uses of debt increases the profitability of manufacturing firms in Nepal.

Effects of Working Capital Management on Profitability: A Case of Nepalese Manufacturing Firms

2021 ◽  
Vol 5 (1) ◽  
pp. 130-147
Author(s):  
Phadindra Kumar Poudel ◽  
Pujan Maharjan
Keyword(s):  
Significant Relationship ◽  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Cross Sectional ◽  
Working Capital Management ◽  
Listed Firms ◽  
Financial Firms ◽  
Cash Conversion Cycle

The study deals with the relationship between firm characteristics of working capital management and firm profitability in Nepal. It examines if firm performance, return on assets is related to cash conversion cycle, days’ sales outstanding, days’ inventory outstanding and current ratio. The study is based on pooled cross-sectional data of 10 non-financial firms from 2071/72 to 2075/76 of listed firms in the Nepal Stock Exchange. The study employed descriptive and causal-comparative research design to attainthe purpose of this study. The result reveals that the current ratio has a positively significant relationship with profitability and days’ sale outstanding has negatively significant relationship with the financial performance of the firm.

scholarly journals Working Capital Management and Its Impact on the Profitability of Pukar International Co.Ltd.

NCC Journal ◽  
2019 ◽  
Vol 4 (1) ◽  
pp. 141-147
Author(s):  
Puspa Raj Ojha
Keyword(s):  
Descriptive Analysis ◽  
Negative Relationship ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Current Ratio ◽  
Working Capital Management ◽  
International Trading ◽  
Collection Period ◽  
The Relationship

This paper aims to report the results of an investigation of the relative importance of working capital management, measured by the Return on Assets (ROA), and its components (Current ratio, average collection period and average payment period) to the profitability of Pukar International Trading. This paper analyzes the effect of working capital Management on firm’s profitability in Nepal for the period 2071 to 2072. For this Purpose, financial data of four year is used. Pearson’s correlation and Descriptive analysis were used to establish the relationship between working capital management and firm’s profitability and components of working capital like Average collection period, Average payment period and Current ratio. The study finds a negative relationship between profitability and average collection period and average payment period, but appositive relationship between profitability and current ratio. Moreover, current ratio and firm size also have significant effects on the firm’s profitability. Based on the key findings from this study it had been concluded that the management of a firm could create value for their shareholders by reducing the number of day’s accounts collection. Firms could also take long to pay their creditors in as far as they did not worry their relationships with these creditors.

scholarly journals Effects of working capital management policies on shareholders’ value: Evidence from listed manufacturing firms in Ghana

2019 ◽  
Vol 66 (5) ◽  
pp. 659-686
Author(s):  
Anokye Adam ◽  
Edward Quansah
Keyword(s):  
Stock Exchange ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Investment Policies ◽  
Financing Policies ◽  
Current Asset ◽  
Management Policies ◽  
Ghana Stock Exchange

This study has sought to determine the effects of working capital management policies on shareholder value creation for six manufacturing firms listed at the Ghana Stock Exchange for the period of 2000-2013. Data were gathered from the annual reports of the firms and the publication of Ghana Stock Exchange. The study employed a longitudinal explanatory non-experimental research design applied to a dynamic panel Autoregressive Distributed Lags methodology framework for analysing the data. The results indicated that conservative current asset investment policies increase economic value added (EVA), whereas aggressive current asset investment policies enhance market-to-book ratio and Tobin?s Q in the long-run. On the other hand, conservative current asset financing policies enhance market-to-book ratio, Tobin?s Q, and EVA in the longrun. Thus, investors discount aggressive current assets? financing policies. A firm pursuing an aggressive current asset investment policy should balance it with a conservative current asset financing policy to create value for its shareholders.

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