An analysis of the working capital management in a local manufacturing company : a case study

Abstract

Working capital management involves the management of a firm's short-term assets and liabilities. It is not enough for a company to be profitable but it must have the liquid resources for its day-to-day operations. In managing its assets a business must ensure that no unproductive assets are kept. On the other hand, with regards to liabilities, it must ensure that it finances its operations with the cheapest available source of funds. This dissertation is a case study concerning a Maltese private company engaged in manufacturing and exporting cables. The main objectives are to identify how the elements of working capital are managed within this company and to suggest any actions which would improve its working capital position. The information obtained from the literature on the topic was utilised to analyse the company's procedures with regards to the management of working capital. From this study it emerged, that overall, the company's working capital is well managed. However, the management of cash should be improved.