*Assistant Professor, Department of Management Studies, Aalim Muhammed Salegh College of Engineering, Avadi - Iaf, Chennai-600055, Tamilnadu, India.
**Assistant Professor, Department of Management Studies, Sri Venkateswara College of Engineering and Technology, Thirupachur, Thiruvallur, Tamilnadu, India.
Online published on 29 September, 2017.
Working capital is very important for any organization to meet its day to day expenses and to meet short term due obligations. An efficient management of working capital is necessary for smooth functioning of the organization and also for maintaining its profitability.
This study was undertaken to evaluate the extent to which working capital has been effectively utilised by Loyal Textile Mills Ltd. This was analysed with the past five year's financial statements of the Organisation.
The study helped in highlighting various statistical tools such as Ratio analysis, Correlation, Boumal's Model for calculating optimal cash balance and Z-Score model for finding the credit worthiness of the company.
Based on the various analysis, it is found that the overall working capital management of Loyal Textile Mills Ltd. is satisfactory. However in certain areas, the company has to improve its efficiency for which suitable suggestions were given.
