ASSESSMENT OF WORKING CAPITAL MANAGEMENT (IN CASE OF YEKABDI AGRO PROCESSING PRIVATE LIMITED COMPANY (WOW))

Abstract

The study is applied to assess the working capital management practice of WOW. The main objective was to know the working capital management practice, the liquidity, the performance and the profitability position of the firm. The study was used descriptive type of research design and it would be use primary and secondary data. All data abstained from annual financial report (balance sheet) of the firm and from interview was assessing through the information collected and interpreted the performance position of Wow in 2009 and 2011. The data was assessed by using different financial ratios such as liquidity and profitability ratios and liquidity ratio measures the firm’s ability to pay its liability, good activity management and profitability of firm. Liquidity determines performance of short term creditor of WOW under current ratios, quick ratio and cash ratio. .WOW has not better current ratio, quick ratio, cash ratio (liquidity passion), turnover ratio (from performance of the firm), net profit ratio; the firm has a poor performance over inventory turnover ratio, work. In other WOW has low inventory management and maintain less amount of net working capital to generate the target level of sale. Finally, after analyzing the stated problems the researchers made conclusion and forward the possible suggestion based on the findings.