Working capital management optimization on company’s level

Bc. Anton Shchupakov

Diplomová práce

Abstract:

Companies may have their level of optimal working capital that maximizes their values through the effective management of current liabilities and assets. Previously, many studies were made on the impact of working capital management on the company’s performance in different sectors. Empirical evidence has shown that working capital management can have a significant impact on firms' performance in times of financial crisis because it affects current assets, short-term liabilities, revenues, and costs of operations. The ultimate objective of this empirical study was to examine the impact of working capital management on the performance of firms. Based on the result of the study, firms may need to extend credit terms for customers, may prolong their cash conversion cycle, may need an extended payment period, and may or may not hold a high volume of inventory. All extending periods and cycles shall be made up to the extent of attaining an optimal level of working capital and better implementing a conservative policy of working capital management. Based on the descriptive and comparative analysis 2 airline companies were observed and based on the financial statements their WCM practices were understood and evaluated. Recommendations and suggestions were drawn in a form of potential Working Management Optimization plans of the companies, and as a result, both of the plans were compared to each other to find out the most efficient one. Thus, it is advisable to consider the result of this study while making decisions regarding their working capital management to support their efficiency.

Keywords

operating cycle, current assets, financial liquidity, Working capital management, working capital optimization, cash conversation

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 30. 11. 2021

Obhajoba závěrečné práce

• Vedoucí: Ing. Zdeněk Toušek, Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program / obor:
Economics Policy and Administration / Business Administration