Here is the synopsis of our sample research paper on WORKING CAPITAL MANAGEMENT: AN OVERVIEW. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper focuses on the concept of working capital management, what it is, and what companies use it more effectively. Bibliography lists 5 sources.
Page Count:
3 pages (~225 words per page)
File: AS43_MTworcapmg.doc
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Unformatted sample text from the term paper:
Working capital management, in its most basic form, means a company has enough cash flow to meet both short-term debt obligations and operating expenses (Working
Capital Management, 2010). Basically, the two main aspects of working capital management focus on ratio analysis and managing individual components of working capital, such as inventory turnover, collections, accounts receivables
and payables management (Working Capital Management, 2010). The following chart will compare and contrast companies in the same industries to determine the strength
of working capital management. Well compare Toyota Motor Corp. and General Motors Co. in the automotive industry and Wal-Mart Stores Inc. and Sears Holding Companies in the retail industry.
Our focus is on ratios, rather than revenue. General Motors (2009) Toyota (2009) Days Inventory 38 31.5 Payables Period 66.7 35.6 Receivables 13 10.8 Cash Conversion Cycle -.7 27.5
Inventory Turnover 9.6 11.6 Asset Turnover .92 .6 Current Ratio 1.13 1.07 Quick Ratio .58 .98 Source: Morningstar Investment Research Center The
notable statistics here between these two automakers are the quick ratio, the cash conversion cycle, days of inventory and the payables period. The cash conversion cycle is the length of
time, in days, it takes a company to convert its resource inputs into cash flows - according to the above, GM has it over Toyota. But lets consider a couple
other things - namely that in 2009, GM was in the process of going through bankruptcy, divesting many of its dealerships, and attempting to streamline its processes. A better analysis
can be made through other ratios, such as receivables, inventory and asset turnover, all of which show Toyota as the stronger of the two.
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