Managing Working Capital in a Manufacturing Organization

A proper management of working capital in a large manufacturing concern assumes importance as it reflects on the sound financial health of an organization. Achieving budgeted growth rate and excelling past performance in sales turnover do not necessarily indicate proper management of working capital as even a highly profitable company may be having a precarious cash position. According to R K Garg, a thorough analysis of working capital position, drawing of appropriate action plans for improvement, a through revamping of existing systems, and a multi-disciplinary team approach are essential to achieve the objective of efficient management of working capital.