Assistant Professor, MBA Department, PES Institute of Technology, Bangalore South Campus, 1km Before Electronic city, Hosur Road, Bangalore-560100
Online published on 15 March, 2019.
An efficient control over the working capital is one of the most important considerations of the financial management of any business undertaking. Working capital is an integral part of the total financial management. Management of current assets is called as working capital.
Management of short-term assets and liabilities warrants a careful investigation since the working capital management plays an important role for the firm's profitability and risk as well as its value. The optimal level of working capital is determined to a large extent by the methods adopted for the management of current assets and liabilities. It requires continuous monitoring to maintain proper level in various components of working capital i.e. cash receivables, inventory and payables etc.
Cash position ratio, Current ratio, Fixed Assets ratio, Gross profit, Liquidity ratio
