A Study on Working Capital Management of R.C.F Ltd
Pankajkumar Raj Narayan Ram , Prof.Shital Shah, Dr.Prof.Ashwini Kshirsagar
Pankajkumar Raj Narayan Ram ,Finance & Alamuri Ratnamala Institute of Engineering and Technology
Prof.Shital Shah ,Finance & Alamuri Ratnamala Institute of Engineering and Technology
Dr.Prof.Ashwini Kshirsagar ,Finance & Alamuri Ratnamala Institute of Engineering and Technology
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Abstract -
This study examines the working capital management practices of R.C.F Ltd., a mid-sized manufacturing firm. The research aims to evaluate the efficiency of the company’s working capital components—accounts receivable, accounts payable, inventory, and cash management—and their impact on overall financial performance. By analyzing financial data from the past five years, the study identifies trends and key performance indicators related to working capital. The findings reveal that R.C.F Ltd. maintains a moderate level of liquidity but faces challenges in optimizing its inventory turnover and managing accounts receivable effectively. The study also highlights the correlation between efficient working capital management and profitability, suggesting that improvements in these areas can lead to enhanced financial stability and operational efficiency. Recommendations include adopting stricter credit policies, improving inventory control mechanisms, and utilizing more effective cash management strategies. This research contributes to the broader understanding of working capital management in manufacturing firms and provides practical insights for similar companies aiming to optimize their financial practices.
Keywords : Working Capital Management, Financial Performance, Liquidity, Accounts Receivable, Accounts Payable, Inventory Management, Cash Management, Manufacturing Industry, R.C.F Ltd., Operational Efficiency.
