Main Article Content
Abstract
A firm’s profitability is determined partly by way of its working capital management. An efficient management of working capital will yield significant results and its neglect can be highly dangerous to any firm. The cement industry is one of the fast growing industries in India. In 2009, there was an increase of 2.9% in sales of cement, when compared to the last two years of sales. This shows that the construction work in the country, especially the intensive and it has several players, it is really worth asking if these companies are efficiently managing their cash and receivables. A sample of two companies were selected for this study on the basis of high sales turnover and data for this study were collected for a period from 2000 to 2010 to analyze whether the sample companies really managed their cash and receivables or not. The study used ration analysis and mean as tools to find out the efficiency of cash and receivable management. Finally, it could be concluded that the cement industry was efficiently managing their cash and receivables and based on the future sales forecast , the sales turnover and profit will be good in the near future.