Working capital management is a vital aspect of financial management that ensures a company can meet its short-term obligations while maintaining operational efficiency. This study focuses on analyzing the working capital management practices of Southern Polymers, a company engaged in the production and distribution of polymer-based products. The primary objective is to assess how effectively the company manages its current assets and liabilities, particularly inventory, accounts receivable, accounts payable, and cash balances. The research utilizes key financial indicators such as the current ratio, quick ratio, working capital turnover ratio, and the operating cycle to evaluate performance over a specified period. Findings indicate that while Southern Polymers maintains an adequate level of working capital, it faces challenges in managing inventory turnover and receivable collections. These inefficiencies can impact liquidity and profitability if not addressed through improved credit policies and inventory controls. The study concludes that adopting efficient working capital strategies can lead to better financial health, improved cash flow, and sustainable growth. Recommendations include enhanced cash flow forecasting, vendor negotiations, and real-time inventory monitoring to optimize working capital usage.
Working Capital Management, Southern Polymers, Current Assets, Current Liabilities, Cash Flow, Inventory Turnover, Receivables Management, Financial Efficiency, Liquidity, Operating Cycle.
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