Working capital management in cement industries in Ariyalur-A comparative study

Working capital is the life blood of business, which includes the management of day-to-day activities of the company. It is a measure which indicates the company's efficiency and financial health of the organization. The main of this study is to ascertain the working capital management of the selected Cement companies in Ariyalur District. The cement companies selected for this study are India cements, Dalmia Bharat cements, Chettinad cements and Ultratech cements. The working capital management of the companies are analyzed for the period of 2011–2015 based on the information provided in balance sheets of the selected companies. This research is analytical research in nature. The data analysis were done using the descriptive statistics and ratio analysis. The results of the analysis clearly indicates that networking capital of India cements is very good, they recorded highest networking capital over the selected period of study, while compared to other cement companies, whereas the Ultratech cement recorded the negative working capital, which means the current liabilities of the company are higher than current assets which is not a good sign of the financial health of the company. Hence through this study it is recommended to the key officials of Ultratech cements they have to take measure to control the current liabilities of the company, in order to ensure financial health or liquidity of the company for day-to-day operations.