Vol. 4, Issue 1 (2017)
Working capital management of Ambuja cements limited through ratio analysis
Author(s): R Saravanan, S Manivasagan, D Gopinathan
Abstract: Efficient working capital management is a vital part in any kind of business. Every Company requires sufficient working capital to pay for all of its shot – term expenses and liabilities. Working capital is an essential element for all business activities, irrespective of their size and nature. Working Capital is an indication of a company's operating liquidity. The company share prices also affect by their potential liquidity and credit- worthiness. Creditors pay the much attention towards the companies repaying ability before issuing the credit. Nowadays even an investor also evaluating the company’s liability level before they make investment. Hence forth, the working capital management is indispensable for all the companies. On the other hand, if the company has more working capital means they could consider to make investment in long – term or short – term sectors to enhance the financial level which helps the company growth because working capital could directly impact the company net profit. So the present study examined the working capital management through ratio analysis at Ambuja Cements Limited. This study exhibits the five years annual report of ACL which collected from secondary source of the respective firm website from the year 2010 to 2015. The study found that the debtor’s collection period is in the optimum level which is much appreciable.