A Study on Working Capital Management in Anantha PVC Pipes, Anathapuram

Working capital management is a crucial aspect of financial management that deals with the planning and control of short-term assets and liabilities to ensure smooth daily operations and financial stability. This study focuses on the working capital management practices at Anantha PVC Pipes Pvt Ltd, a PVC pipe manufacturing firm located in Hampapuramu village, Raptadu mandal in Anantapur district, Andhra Pradesh. The company’s working capital comprises current assets such as cash, inventory, receivables, and current liabilities like payables, which are essential for its production and sales activities. The research analyses the changes in working capital over a defined period, evaluates the liquidity position of the firm through ratios such as current and quick ratios, and examines operational efficiency via working capital turnover. The findings indicate fluctuations in working capital components and turnover ratios over the study period, reflecting variations in how efficiently assets are managed. While liquidity remains generally satisfactory, the study suggests improvements in inventory and receivables management to enhance overall working capital efficiency. Effective management of working capital is shown to be important for maintaining adequate cash flow, meeting short-term obligations, and supporting the company’s profitability and operational continuity.