A Study of Working Capital Management at Power Related Industry in Field of Manufacturing and EPC Projects

Renukadevi S.*, Roshini P.**, Latha K.***
*-*** Department of Management Studies, SRM Valliammai Engineering College, Kattankulathur, Tamil Nadu, India.
Periodicity:September - December'2023
DOI : https://doi.org/10.26634/jecom.3.3.19899

Abstract

Working capital means the funds available and used for the day-to-day operations of a business. Efficient management of working capital is essential for the successful operation of a business enterprise and improving its rate of return on the capital invested in assets. Working capital management involves balancing movements related to five main items, such as cash management, accounts receivable, accounts payable, short-term debt management, and inventory, to ensure a business can operate efficiently with adequate resources. It is also essential to maintain the liquidity portion to ensure that the day-to-day operations of the business continue. The study is based on secondary data from records and reports. The study aims to compare the present financial performance with that of the past five years and examine the company's current financial position. The data used in this study was derived from the balance sheet, profit and loss statements, and cash flow statements. The types of analysis used in this study to reveal the financial position of the company were ratio analysis and comparative balance sheet analysis. Additionally, the study incorporates trend analysis to provide a comprehensive understanding of the company's financial trajectory. By examining both historical data and current financial indicators, this research seeks to offer valuable insights into the company's performance and potential areas for improvement.

Keywords

Working Capital Management, Ratio Analysis, Trend Analysis, Power Related Industry, Manufacturing Field, EPC Projects, Efficient Management.

How to Cite this Article?

Renukadevi, S., Roshini, P., and Latha, K. (2023). A Study of Working Capital Management at Power Related Industry in Field of Manufacturing and EPC Projects. i-manager’s Journal on Economics & Commerce, 3(3), 8-15. https://doi.org/10.26634/jecom.3.3.19899

References

[1]. Abdussalam, A. G., & Darun, M. (2017). Exploring the relationship between working capital management, profitability and capital structure. Accounting and Finance Review (AFR), 2(1), 38-45.
[2]. Anwar, Y. (2018). The effect of working capital management on profitability in manufacturing company listed in Indonesia stock exchange. The Accounting Journal of Binaniaga, 3(1).
[6]. Prša, D. (2020). The impact of working capital management on the profitability of Croatian manufacturing SMEs. Ekonomski Vjesnik/Econviews: Review of Contemporary Business, Entrepreneurship and Economic Issues, 33(2), 371-382.
[7]. Raheman, A., & Nasr, M. (2007). Working capital management and profitability–Case of Pakistani firms. International Review of Business Research Papers, 3(1), 279-300.
[10]. Vijayakumar, A.N. (2010). Impact of working capital management on profitability and net worth - A study on selected Indian tea plantations companies. Sona Global Management Research, 4(3), 71-83.
If you have access to this article please login to view the article or kindly login to purchase the article

Purchase Instant Access

Single Article

North Americas,UK,
Middle East,Europe
India Rest of world
USD EUR INR USD-ROW
Pdf 35 35 200 20
Online 35 35 200 15
Pdf & Online 35 35 400 25

Options for accessing this content:
  • If you would like institutional access to this content, please recommend the title to your librarian.
    Library Recommendation Form
  • If you already have i-manager's user account: Login above and proceed to purchase the article.
  • New Users: Please register, then proceed to purchase the article.