Abstract
Working capital management is an important aspect of financial management that ensures the smooth functioning of daily business operations. It refers to the management of current assets and current liabilities to maintain adequate liquidity and operational efficiency. In the automobile dealership industry, efficient working capital management plays a significant role because companies deal with high inventory levels, credit sales, and continuous cash flow requirements. The present study focuses on analyzing the working capital management of FPL Hyundai. The study aims to evaluate the efficiency of the company in managing its short-term assets and liabilities over a period of five years. The research is based on analytical research design and mainly uses secondary data collected from financial statements and annual reports.
Various financial tools such as ratio analysis, working capital turnover ratio, current ratio, quick ratio, inventory turnover ratio, and receivable turnover ratio are used to evaluate the company’s working capital efficiency. The study also applies comparative balance sheet analysis and trend analysis to understand the changes in working capital components. The findings of the study indicate that the company maintains a reasonable level of working capital, though certain areas such as inventory management and receivable collection require improvement. The study suggests adopting better credit policies, effective inventory control, and improved financial monitoring to enhance working capital efficiency and overall financial stability of the organization.
Keywords: Working Capital, Liquidity, Inventory Management, Ratio Analysis, Automobile Industry, Financial Efficiency.
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