"Study the Impact of Working Capital Management on Maruti Suzuki Performance"

"Study the Impact of Working Capital Management on Maruti Suzuki Performance" The implication of the study is highlighted by the fact that the mode of administration of working capital determined to a very great extent, the success or failure of the overall performance of an enterprise. There are two important instruments for analyzing the working capital position of an enterprise Funds Flow Analysis of Working Capital, Ratio Analysis of Working Capital. The present study “Working Capital Management at Maruti Suzuki Company in India” analyses the efficiency of the working capital management and its constituents, i.e. inventory amount, cash and bank balances and various current liabilities. The study attempts to determine the efficiency and effectiveness of management in each segment of working capital. The Working Capital Turnover, Cash as a percentage to Total Assets and current assets, cash to current liabilities of the Maruti Suzuki Company in different years shows decreasing trend throughout the study period except in 2009 which show increasing trend. In contrast, Cash to Net Working Capital of Maruti Suzuki Company in different years shows an increasing movement throughout the study period except in 2009 which shows decreasing trend. The essential objective of working capital management is to minimize cost to the firm, whether managing cash, receivables or inventory or miscellaneous current assets, minimize risk to the company on receivables, ensure just level of inventory to operate a full stage of capacity with minimum stock. The working capital management, should target to optimize yield and sales with minimum risk and price.