Table of Content

Content Page
1. Introduction ………………………………………………………………………………………………………….1
1.1 Background of the study………………………………………………………………………………………..1
1.2 Statement of the problem……………………………………………………………………………………..2
1.3 Objective of the study…………………………………………………………………………………………….2
1.3.1. General objective…………………………………………………………………………………………….2

1.3.2. Specific objectives……………………………………………………………………………………………….2

1.4 Significance of the study…………………………………………………………………………………….…...2

1.5 Scope and limitation of the study……………………………………………………………………….……3

1.5.1. Scope of the study………………………………………………………………………………………………..3

1.5.2. Limitation of the study………………………………………………………………………….…………..3

1.6. Organization of the research report…………………………………………………………………………3

1.7. Research questions…………………………………………………………………….…………………………..4

2 Review if literature………………………………………………………………………………………………………5

2.1. Theory………………………………………………………………………………………………………………….…..5

2.1.1. Concept and nature of working capital management…………………………………………….5

2.1.2. Liquidity………………………………………………………………………………………………………………….7

2.1.3. Current asset management…………………………………………………………………………………….8

2.1.4. Cash management technique………………………………………………………………………………….8

2.1.5. Operating cycle………………………………………………………………………………………………………..8

2.1.6. Cash conversion cycle……………………………………………………………………………………………….9

2.1.7. Management of marketable securities…………………………………………………………………….10

2.1.8. Management of Accounts receivable……………………………………………………………………….10

2.1.9. Inventory management………………………………………………………………………………………….…11

2.2.1. Need for working capital……………………………………………………………………………………………12

2.2.2. Balanced working capital position……………………………………………………………………………..12

2.2.3. Determinants of working capital………………………………………………………………………………..13

2.2.4. Issues in working capital management…………………………………………………………………..….16

2.2.5. Estimation of working capital needs………………………………………………………………………..…18

2.2.6. Source of finance………………………………………………………………………………………………..………18

2.2. Empirical……………………………………………………………………………………………………………….……20

3 Research methodologies………….……………………………………………………………………………….....24

3.1. Research approaches…..................................................................................................24

3.2. Population and sample design…………………………………………………………………………….….…..24

3.3. Source and method of data collection.....................................................................…....24

3.4. Method of data collection…............................................................................................25

3.5. Data analysis techniques……………………………………………………………………………………...….…25

4. Presentation analysis and interpretation of data……………………………………………………….……26

4.2. Assessment of the management of inventory……………………………………………………………..26

4.2. Assessment of Receivables Management.............................................................29

4.3. Assessment of Cash management.........................................................................33

5. Conclusion and recommendation.............................................................................35

5.1. Conclusion..............................................................................................................35

5.2 Recommendation.....................................................................................................35