Study on Working Capital In Orient Bell
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Date
2018-10-17T08:06:46Z
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Abstract
This study will help the company in the better management of its working capital and thus improve the performance of company.
Working capital management is the process of planning and controlling the level of current assets of the firm as well as financing these assets. Specifically, working capital management involves decisions like what quantities of cash, other liquid assets, accounts receivable, accounts payable and inventories the firm will hold at any point of time. Because of high competition and changing economic scenario, the importance of working capital management arises which is vital for any business.
This research is conducted in the area of working capital management is based on a hypothesis, which states that the working capital policy of the company has an effect on its risk and return. The hypothesis was tested by the financial tools. Under the financial tools various ratio analysis and various returns calculations were used. The analysis and interpretation has been carried out by preparing tables and by using the graphs which is shown in pictorial representation.
The importance of Working Capital Management is reflected in the fact that financial managers spend a great deal of time in managing current assets and current liabilities. Arranging short – term financing, negotiating favourable credit terms, controlling the movement of cash, administering accounts receivable and monitoring the investment in inventories consumes a great deal of time of financial managers.
This project is a small step in understanding the importance of cash, receivables, and inventory management with special reference to Orient Bell pvt ltd. While doing so, the company’s past performance, procedures and other relevant details are also studied. Therefore, the ratio analysis is done and a using the past performance of the company and the data collected is analysed from balance sheet and profit and loss statement of the company.
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Lavanya.S, 1NZ16MBA28