scholarly journals An Analytical Study of Working Capital Management of Selected Cement Companies in India

2021 ◽  
Vol 2 (4) ◽  
pp. 56-65
Author(s):  
Ahmed Mahdi Abdulkareem ◽  
Alok Kumar Chakrawal
Keyword(s):  
Data Analysis ◽  
Analytical Study ◽  
Balance Sheet ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Current Ratio ◽  
Working Capital Management ◽  
Test Hypothesis ◽  
Near Term

This article is to analyze and evaluate working capital management of selected cement companies.  The main purpose of this study is to find out the liquidity position of selected cement companies in India, five companies were selection .The duration of study is five years start from 2015-16 to 2019-20. Two ratios were used for the analysis of data: current ratio quick ratio. To test hypothesis ANOVA was used. The major findings of the study indicate that there are significance difference in the quick ratio and current ratio of selected cement companies. Based on the data analysis, there is a mixed trend in the current ratio during the year 2015-16 to 2019-20. The analysis also shows the ups and down in the quick ratio of the selected cements companies during the period of 5 year. It indicates that there is mixed trend in quick ratio during the year 2015-16 to 2019-20. Removing short-term debt from balance sheet allow companies to have better  quick and current ratios and allow to save some of liquidity  in the near term and put in to better use.  Companies are suggested to adopt more aggressiveness in maintaining their current rasio.

scholarly journals WORKING CAPITAL MANAGEMENT - IT’S IMPACT ON LIQUIDITY AND PROFITABILITY - A STUDY OF KERALA MINERALS AND METALS LTD

2020 ◽  
Vol 8 (5) ◽  
pp. 199-207
Author(s):  
Sunilraj N.V
Keyword(s):  
Negative Relationship ◽  
Ranking Method ◽  
The Other ◽  
Capital Management ◽  
Working Capital ◽  
Weak Correlation ◽  
Short Term ◽  
Current Ratio ◽  
Working Capital Management ◽  
Proper Management

Working capital management involves the various steps for the proper management of current assets and current liabilities which avoids the risk of a shortage of funds for meeting short-term obligations and eliminates the blocking of funds in current assets on the other hand. The present study makes an attempt to give a conceptual insight on working capital management and assess its impact on liquidity and profitability of Kerala Minerals and Metals Ltd. A proper tradeoff between profitability and liquidity is necessary for every enterprise to survive in any kind of environment. The study also made an attempt to analyse the liquidity and profitability position of KMML. For this, correlation and spearman’s rank has been used. The study covers ten-year data from 2009-10 to 2018-19. The correlation and spearman’s ranking method exhibits a weak correlation and negative relationship between liquidity and profitability. The Motaal’s test has also been applied to test the liquidity position. The liquidity ratios such as the current ratio and liquid ratios are higher than the benchmark which means that the liquidity position is good. The study indicates that the liquidity position of the enterprise has enhanced over the period of study.

scholarly journals Working Capital Management and Corporate Profitability: Empirical Evidences from Nepalese Manufacturing Sector

2020 ◽  
Vol 23 (1) ◽  
pp. 137-152
Author(s):  
Pitri Raj Adhikari
Keyword(s):  
Data Analysis ◽  
Manufacturing Firms ◽  
Debt Ratio ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Conversion Period ◽  
The Impact

 This research paper attempts to fill the gap regarding the working capital management of manufacturing firms in context of Nepal by providing empirical evidence, and moreover, this study act as foundation for future research activity because there are very few working capital management research literatures in Nepalese context. The secondary data for data analysis are retrieved from annual reports of five manufacturing firms for eight-year period from 2010/11 to 2017/18. This study examines the impact of different working capital components, i.e. inventory conversion period, receivable conversion period, payable deferred period, cash conversion cycle, debt ratio and current ratio, with profitability of a manufacturing firm, where profitability is represented by return on equity, return on assets and net income. Statistical tools used for data analysis are Pearson’s correlation, ordinary least square regression and binary logistic regression. Such that, this study found that, inventory conversion period, payable deferral period and cash conversion cycle are inversely related with the profitability of manufacturing firms, whereas, receivable conversion period , debt ratio and current ratio are positively related.

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.

A Study on Working capital Management in Hindustan Petroleum Corporation Limited

2021 ◽  
pp. 164-168
Author(s):  
Sruthi B ◽  
Rashmi R
Keyword(s):  
Annual Report ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Effective Management ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
The Past ◽  
The Relationship

Working capital management is important for every organization as it refers to the effective management of current assets and current liabilities. The aim is to make sure that the firm is capable to continue its operations and it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses. In this paper, an attempt has been made to study the management of working capital in Hindustan Petroleum Corporation Limited, a leading public sector enterprise in India over a period of 10 years (That is from 2009-10 to 2018-19). The paper also attempts to study the components of working capital and analyze the relationship between liquidity and profitability of HPCL. The study is based on secondary data collected from annual report of HPCL for the past 10 years, Pearson correlation and regression model are used for this purpose. From the study it is found that there is a significant relationship between liquidity and profitability.

scholarly journals Working Capital Management Practices

2019 ◽  
Vol 8 (2S8) ◽  
pp. 156-161
Keyword(s):  
Management Practices ◽  
Secondary Data ◽  
Project Work ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Good Opportunity ◽  
Working Capital Management ◽  
Money Flow ◽  
The Relationship

VJ Engineers is one of the popular organizations in Chennai. Seeing the good opportunity to study financial systems and practices of VJ Engineers, it is relatively important to take up assignment on ‘WORKING CAPITAL MANAGEMENT IN VJ ENGINEERS’. During the project work, it is being analyzed the working capital position of this organization. [1],[ 3],[5] Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of Working capital management is to ensure that the firm is able to continue its operations and that it has sufficient money flow to satisfy both maturing short-term debt and upcoming operational expenses.The study of working capital management is very helpful for the organisation to know its liquidity position. The study is relevant to the organization to know the day to day expenditure. This study is relevant to give an idea to utilise the current assets.This study is also relevant to the student as they can use it as a reference. This report will help in conducting further research. Other researcher can use this project as secondary data uncovering of PDA incorporation in effects on police reports.

Finance Strategies for Medium-Sized Enterprises

2021 ◽  
pp. 1323-1345
Author(s):  
Chen Liu
Keyword(s):  
Best Practice ◽  
Balance Sheet ◽  
Investment Decisions ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Artificial Intelligent ◽  
Blockchain Technology ◽  
Supply Chain Finance ◽  
Future Work

This chapter discusses how FinTech—technology-enabled financial solutions and services—can optimize finance strategies of medium-sized enterprises. Using a balance sheet model, the chapter integrates medium-sized companies' financing strategies, working capital management, and investment decisions and discusses FinTech solutions in each area to suggest best practice. Specifically, the chapter first discusses how crowdfunding and its different types could provide alternative financing for medium-sized enterprises. Second, FinTech solutions for online payment and transfer, invoice finance, supply chain finance, and trade finance help medium-sized enterprises optimize their working capital management. Third, blockchain technology and artificial intelligent (AI)-based decisions tools could potentially help medium-sized businesses optimize their decision-making process. This chapter also suggests future work that will allow us to better understand FinTech applications in medium-sized 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 Key factors in working capital management in the Brazilian market

2012 ◽  
Vol 52 (1) ◽  
pp. 55-69 ◽  
Author(s):  
Nathalie Vicente Nakamura Palombini ◽  
Wilson Toshiro Nakamura
Keyword(s):  
Balance Sheet ◽  
Internal Variables ◽  
Capital Management ◽  
Key Factors ◽  
Working Capital ◽  
Public Companies ◽  
Working Capital Management ◽  
Financing Decisions ◽  
Investment And Financing

Many studies have been conducted in corporate finance regarding long-term investment and financing decisions. However, short-term asset investments play a significant role in the balance sheet of companies. Moreover, financial managers dedicate significant amounts of time and effort to the subject of working capital management, balancing current assets and liabilities. This paper provides insights regarding the key factors of working capital management by exploring the internal variables of a number of companies. This study used data from 2,976 Brazilian public companies from 2001 to 2008, and found that debt level, size and growth rate can affect the working capital management of companies.

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