An empirical study of receivables management in real estate sector of India

Financial performance of any firm is based on financial structure, working capital, and profitability. Working capital is considered to be lifeblood and controlling nerve centre of the business. It is the management of short term financing requirements of a firm which focuses on maintaining an optimum balance of working capital elements – receivables, inventory, payables and cash. This paper represents an empirical study which examines the receivables management in Real estate sector in India with a data of 10 years. For the purpose of the study secondary data is used and researcher has considered 05 units as sample. For the purpose of analysis researcher has used ratio techniques and to test hypothesis ANOVA technique has been applied. The study reveals that the level of investment in receivables as a percentage of sales was more than 50 percent showing the higher level of credit sales in Indian real estate sector.