scholarly journals Working Capital Management in AVR Manufacturers Pvt Ltd, Chennai

This endeavor deals with the "A Study on Working Capital Management with reference to AVR Manufacturers". Working Capital Management is stressed over the issues that develop while attempting to manage the present assets, the present liabilities and the cover relationship that exist between them. The target of Working Capital Management is to manage the affiliation's present assets and current liabilities in such way that the pleasing level of Working Capital is referenced. The present assets should be tremendous enough to cover its present liabilities in order to ensure a reasonable edge of the security. [1],[ 3],[5] The examination of Working Capital relies upon instruments like Trend Analysis, Ratio Analysis, Working Capital impact, working cycle, etc. Further the examination relies upon latest 5 years Annual Reports of AVR Manufacturers. Besides, even factors like contender's assessment, industry examination were not considered while setting up this errand. For this assessment the discretionary data gathering method is used. The data aggregation was away for examination of Working Capital organization of the association. There is a necessity for Working Capital as present points of interest for plan with the issue rising out of nonattendance of speedy affirmation of cash against items sold. Thusly satisfactory Working Capital is critical to help arrangements activity. This examination has a bit of the limitations like obliged data, confined period, compelled area and the term of the assessment is low. [2 ],[ 4],[6]

This assignment deal with the “A Study on the Evaluation of Working Capital Management with reference to SHILLONG URBAN COOPERATIVE BANK.' Working Capital Management is concerned with the issues that occur in the attempt to handle present assets, present liabilities and the interrelationship between them. The goal of Working Capital Management is to manage the current assets and current liabilities of the firm in such a way that the satisfactory level of Working Capital is mentioned. Current assets should be big enough to cover their present liabilities to guarantee a decent security margin. The primary goal of this research is to study the management of working capital and the efficiency of handling a working capital in a business. The secondary objective of this research is to study the optimum level of the company's current assets and current liabilitiesTo study the liquidity situation through different working capital associated ratios, to study economic performance using trend analysis instruments. The study of working capital management is important because, unless the working capital is managed effectively, effectively monitored, properly planned and periodically reviewed at regular intervals to remove bottlenecks, if any, the company can not gain. profits and increase its turnover. Working Capital research is based on instruments like Trend Analysis, Ratio Analysis, Operating Cycle, etc. Further the research is based on the Annual Reports of the last 5 years. And even factors such as the assessment of rivals, the assessment of the sector was not regarded during the preparation of this project. The secondary technique of information collection is used for this research. The purpose of the information compilation was to study the company's management of working capital. Working capital in the form of current assets is needed to cope with the issue resulting from the absence of instant realization of money against sold products. Therefore, adequate working capital is needed to maintain sales activity.Efficient management of working capital involves firms to work with a certain quantity of net working capital, the precise quantity varying from company to company and depending, among other things; on the nature of the firms. This research has some constraints such as restricted information, restricted period, restricted region, and the length of the research is very small.


2015 ◽  
Vol 1 (2) ◽  
pp. 55 ◽  
Author(s):  
Sabo Muhammad ◽  
Rabi’U Saminu Jibril ◽  
Usman Sani K. Wambai ◽  
Fatima Bello Ibrahim ◽  
Tjjani Habibu Ahmad

The paper examines the impact of working capital management on corporate profitability through the periods of 2008 to 2012. The total of seven firms listed on the floor of the Nigerian Stock Exchange was studied, using secondary data generated from annual reports and accounts of the sampled companies and the Nigerian Stock Exchange Fact book. The data were analyzed by means of descriptive statistics and GLS regression analysis using STATA 11. The study finds a positive relationship among Average Collection Period (ACP), Current Ratio (CR) and the size of the firm (LOGSIZE) with Profitability and a negative relationship with Inventory Turnover Period (ITP), Average Payment Period (APP). The paper therefore recommends that cash collected should be re-invested into short-term investment to generate profits and fund left idle in the cash or excessive liquidity is costly and do not lead to profitability.


2016 ◽  
Vol 8 (6) ◽  
pp. 49 ◽  
Author(s):  
Joseph Mbawuni ◽  
Mercy Hawa Mbawuni ◽  
Simon Gyasi Nimako

<p>The study examined the impact of working capital management (WCM) on the profitability of petroleum retail firms (PRFs) in Ghana over a six year period (2008-2013). Audited annual reports from a sample of five selected petroleum retail firms in Ghana are employed in the study. Using, descriptive analysis, correlation and regression analysis, the results indicate that, in the PRFs in Ghana, there is favourable net working capital for the firms and a favourable networking capital to total assets ratio. The most important WCM component that drives the firm’s profitability, measured in return on assets (ROA), is average days payable (ADP). The rest of WCM components, cash conversion cycle (CCC), average days inventory (ADI) and average days receivables (ADR) did not have significant relationship with profitability. The study further found that WCM practices among the five selected PRFs support the conservative strategy of WCM, rather than an aggressive WCM strategy. Theoretical and managerial implications are discussed.<br /><br /></p>


Author(s):  
K Malarkodi, Dr. P Vanitha U Rohini,

Managing working capital is an important metric for all businesses,regardless of their size and it is a signal of a company’s operating liquidity. The purpose of the study is to maximize the productivity and profit in employment of capital for the smooth and rapid flow of fund is maintained and the efficiency working capital or profitability is enhanced.To answer the research question the study is setupwith Etexproinde.To test the hypothesis ratio analysis, working capital turnover, accounts receivable was applied. The study attempt maximizes the productivity and profits in the employment of capital


Author(s):  
Sardar Shaker Ibrahim

<p><em>This paper observes the impact of working capital management on profitability of industrial sector in Iraq. Four companies based in Iraq namely: Iraqi Date processing, Iraqi carton manufactories, Baghdad soft drinks and Iraqi for tufted carpets randomly selected and analyzed for the present study over the period 2007 to 2016. Annual reports of these companies have been studied and significant ratios calculated. The variables that were identified as independent for working capital were, current ratio and quick ratio, while return on equity ROE as dependent variable for profitability. The Ordinary Least Square (OLS) model used to examine the impact of working capital management on profitability. Results indicate that ROE is positively related with working capital variables.</em></p>


2019 ◽  
Vol IV (I) ◽  
pp. 140-149
Author(s):  
Ijlal Haider ◽  
Rais Khan ◽  
Muhammad Suhail

This article examines the impact of corporate governance of manufacturing firms of Pakistan considering Working Capital Management. A quantitative approach is used to analyze and test research hypothesis. Annual reports of forty-seven (47) companies are studied for a period of five years (2010-2014) from 100 index population with the total of 235 observations. Analysis on the obtained data were done using descriptive and regression analysis (Ordinary Least Square) method. Factors considered for corporate governance included Board Size, Board Meeting, and Board Committee Peshawar. Whereas, Working Capital Management was measured by account receivable (days), account inventory (days) and account payable (days). The results of study concludes that no significant impact of corporate governance was observed on Working Capital Management of manufacturing firms in Pakistan.


1999 ◽  
Vol 14 (2) ◽  
pp. 255-267 ◽  
Author(s):  
Jane M. Cote ◽  
Claire Kamm Latham

This teaching note has two objectives. First, it explores the limitations of the traditional measures of working capital management presented in the financial ratio analysis component of a typical accounting curriculum. Second, it presents an additional or alternative measure based on early work in the finance literature. Three current asset and liability accounts are combined into a single “Merchandising Ratio,” which provides a measure of the net effect of a firm's working capital management strategy. Data from a sample of retailing companies demonstrate how the merchandising ratio can be used to enhance students' analytical skills.


2012 ◽  
Vol 3 (2) ◽  
pp. 749
Author(s):  
Engelwati Gani

The study was conducted at PT. Unilever Indonesia, Tbk, which aims to determine the level of working capital management and corporate productivity. Quantitative analysis methods used and data analysis techniques used are the working capital analysis, financial ratio analysis and the analysis of the productivity ratio. Research results obtained from the results that a decrease in working capital at PT. Unilever Indonesia, Tbk. from the year 2006-2010 which decreases the amount of current assets while current liabilities increased. PT levels of liquidity. Unilever Indonesia, Tbk. is also quite low and has decreased every year. Expected PT. Unilever Indonesia, Tbk. able to increase the amount of current assets to cash and cash equivalents productivity is not compromised. Productivity ratio of PT. Unilever Indonesia, Tbk in 2010 has increased due to production cost savings and increased sales obtained. This suggests a tight working capital management is carried out by PT. Unilever Indonesia, Tbk. can increase company productivity.


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