Working capital management optimization on company’s level

Mgr. NEEL PANDYA, MCom

Diplomová práce

Abstract:

When it comes to the financial performance of various enterprises and corporations, working capital management is a vital component. It depicts the tie between fluidity and the business's profitability in relation to the related company. Any business's working capital is made up of two main components: current assets and current liabilities. Several previous research studies have looked into the relationship between working capital and productivity in advanced financial prudence. The key goal of this thesis is to analyze various relationship between working capital management and governance in order to improve return on an investment and output for a specified company or companies. The financial data of one organization was reviewed in order to meet the above-mentioned goals. This company focuses on the project's integrated design, manufacture, and construction of services. Because accounts receivables made up the majority of the example company's working capital, the research focused on the cash conversion cycle. The company's accounts receivable cycle, account payables cycle, cash conversion cycle, and various ratios have all been examined using descriptive analysis. As a result, how the changes in credit terms, discount policy, terms of payment, credit score can influence the working capital management & company's performance were drawn. As a result, it is recommended that a corporation consider this conclusion whenever making a decision about effective working capital management.

Keywords

Working capital, Cash, Conversion cycle, Profitability, Inventory, Payment, Receivables, Company, Credit, Sales, Optimal, Management, Interspan, Current asset, Current liabilities

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 30. 3. 2022

Obhajoba závěrečné práce

• Vedoucí: Ing. Zdeněk Toušek, Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program / obor:
Economics and Management / Economics and Management