A study of working capital management at power related industry in field of manufacturing and EPC projects

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.