An analysis of working capital management at Seifert MTM Systems Malta LTD

Abstract

Working capital refers to current assets less current liabilities - hence its alternative name of net current assets. Working capital management refers to the financing, investment and control of net current assets within policy guidelines. This dissertation focuses on the management of working capital at Seifert mtm Systems Malta Ltd. The company, which was founded in 1965, has from the very beginning specialised in solving customers' electronic heat dissipation problems. Today Seifert mtm Systems GmbH together with the subsidiary company Seifert mtm Stystems Ltd. Malta is an internationally operating organisation. Organisations establish the level of working capital depending on a variety of factors including the type of products and services they sell, credit policies, efficiency with which working capital is managed and the type of industry they operate in. This dissertation focuses on the way the company manages its working capital components. The dissertation analysis the management of stocks, debtors, cash and current liabilities within the company. A common problem face by the company is its dependency on one main customer and the lengthy settlement of debts owing which has a negative effect on other areas of the business.