IDEAS home Printed from https://ideas.repec.org/a/jct/journl/v4y2009i2p37-39.html
   My bibliography  Save this article

Management of Working Capital for an Enterprise

Author

Listed:
  • Dr. Neeraj Mittal

    (Assistant Professor, Department of Management, J.P. Institute of Management, Meerut, (U.P.) India.)

  • Dr. S. S. Chauhan

    (Assistant Professor, Department of Management, J.P. Institute of Management, Meerut, (U.P.) India.)

Abstract

Management of these short term assets and liabilities warrants a careful investigation, since the working capital management plays an important role in a firm’s profitability and risk as well as its value (smith, 1980). This paper firstly defines the concept, purpose, scope, types / kinds and components of Working Capital Management (WCM). Secondly, it analyzes that Working Capital Management (WCM) should not be excessive and inadequate as both are harmful to the business. Excessive and inadequate Working Capital Management (WCM) is dangerous for the components as well. So, we can say that working capital of an enterprise should be optimal.

Suggested Citation

  • Dr. Neeraj Mittal & Dr. S. S. Chauhan, 2009. "Management of Working Capital for an Enterprise," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 4(2), pages 37-39, October.
    • Handle: RePEc:jct:journl:v:4:y:2009:i:2:p:37-39
    as

    Download full text from publisher

    File URL: https://www.jctindia.org/index.php/jct/article/view/o09-nmssc
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3‐4), pages 573-588, April.
    2. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tuba DERYA-BASKAN & Eda BALIKÇIOĞLU, 2018. "Firma Bileşenlerinin Halka Açık Perakende Firmalarında Kurumlar Vergisine Etkisi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    2. Simranjeet Singh & Harwinder Kaur, 2017. "Working Capital Management and Profitability: Evidence from Selected Steel Manufacturing Companies in India," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 8(2), pages 73-79, May.
    3. Chen, Catherine Huirong & Choy, Siu Kai & Tan, Yongxian, 2022. "The cash conversion cycle spread: International evidence," Journal of Banking & Finance, Elsevier, vol. 140(C).
    4. Sofie Balcaen & Sophie Manigart & Hubert Ooghe, 2011. "From distress to exit: determinants of the time to exit," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 407-446, August.
    5. Genesis Gyasi Sah & Judit Furedi-Fulop, 2022. "The Effects of Proper Inventory Management on the Profitability of SMEs," Technium Social Sciences Journal, Technium Science, vol. 32(1), pages 340-351, June.
    6. María Angélica Arbeláez & Alejandro Becerra & Francisco Fernández & David Forero, 2019. "El sector comercio en Colombia y el crédito de proveedores," Informes de Investigación 17610, Fedesarrollo.
    7. Naumoski Aleksandar, 2022. "Financial Policy and Companies’ Sustainable Growth," Economic Themes, Sciendo, vol. 60(3), pages 281-301, September.
    8. Malik, Zafar Ullah & Iqbal, Athar, 2012. "Affect of Working Capital Management on Firms Profitability in Sugar Industry of Pakistan," MPRA Paper 41436, University Library of Munich, Germany.
    9. Mai, Nhat Chi, 2022. "Capital Raising and Management of Vietnamese Small and Medium Sized Enterprises after Integrating into Global Economy," OSF Preprints dv68m, Center for Open Science.
    10. Fan, Chenguang & Bae, Seongho & Liu, Yu, 2024. "Can FinTech transform corporate liquidity? Evidence from China," Innovation and Green Development, Elsevier, vol. 3(2).
    11. Mahdi Salehi & Reza Ghorbanzadeh, 2016. "The influence of firms' capital expenditure on firms' working capital management," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(3), pages 287-301.
    12. Duo Xu & Christopher Gan & Zhaohua Li & Pengcheng Wang, 2021. "Earnings, Working Capital and Dividend Payout: Evidence from the London Stock Exchange," Annals of Economics and Finance, Society for AEF, vol. 22(2), pages 421-449, November.
    13. repec:fst:rfsisf:v:8:y:2023:i:14:p:68-83 is not listed on IDEAS
    14. Talat Afza, 2011. "Working Capital Management Efficiency of Cement Sector of Pakistan," Journal of Economics and Behavioral Studies, AMH International, vol. 2(5), pages 223-235.
    15. Nida Shah, 2016. "The Impact of Working Capital Management on Firms Profitability in Different Business Cycles: Evidence from Pakistan," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 58-70, March.
    16. Lupu Dan, 2013. "Financial Micromanagement For Bse Firms," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 5-9, October.
    17. Lawrence Mbuvi & Gregory Namusonge & Wycliffe Arani, 2016. "Factors Affecting Automation of Inventory Management in Micro, Small and Medium Enterprises: A Case Study of Kitui County," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(1), pages 15-27, January.
    18. Giorgio Calcagnini & Annalisa Ferrando & Germana Giombini, 2015. "Multiple market imperfections, firm profitability and investment," European Journal of Law and Economics, Springer, vol. 40(1), pages 95-120, August.
    19. Afrifa, Godfred & Tingbani, Ishmael, 2017. "Working Capital Management, Cash Flow and SMEs’ Performance," MPRA Paper 82894, University Library of Munich, Germany, revised Oct 2017.
    20. Ala’a Adden Abuhommous & Ahmad Salim Alsaraireh & Huthaifa Alqaralleh, 2022. "The impact of working capital management on credit rating," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-20, December.
    21. Kebewar, Mazen & Shah, Syed Muhammad Noaman Ahmed, 2013. "The effect of debt on corporate profitability: Evidence from French service sector," EconStor Preprints 73556, ZBW - Leibniz Information Centre for Economics.

    More about this item

    Keywords

    stress; employee attraction; pressure; turnover; retention strategies;
    All these keywords.

    JEL classification:

    • A0 - General Economics and Teaching - - General
    • C0 - Mathematical and Quantitative Methods - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jct:journl:v:4:y:2009:i:2:p:37-39. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Himanshu Agarwal (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.