CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
No matter the amount of money spent on equipment, plant and machinery, building etc. if the ingredient for production are not efficiently managed the entire amount committed will become a waste. As essential as these are without working capital there is going to be a set back.
Aminu (2003) defines working capital as a firms investment in short term assets that is cash account receivable, short term or marketable securities and inventories similar Philip (2001) sees working capital as items that are required for day to day production of goods (services) to be sold by a firm.
Philip (2001) stated that working capital management refers to a process of all aspect of the administrations of both current assets and current liabilities. He also explains that it is a process of planning, directing, controlling and decision making over working capital to achieve the aims and objectives of the company. Philip (2001) defines management as a process of planning, directing, controlling and decision making in order to achieve the aims.
Finance is a broad term that describes two related activities, the study of how money is managed and the actual process acquiring needed funds, while Don (2012) defined finance as a field that deals with the study of investment that includes the dynamics of assets and liabilities over time under conditions of different degree of uncertainty and risk.
The availability of working capital is an important factor to be consider as it is a pivot upon which the life of the firm revolves. But more importantly it is the ability of the manager to harness the components of working capital to bring about consistency in the success and growth of the firm. The efficiency and effectiveness of the management of this vital ingredient is a determining factor of the company’s community in business.
1.2 Statement of the Problem
It is an established fact that no matter how an organization is well equipped with both machines and human resources without the necessary working capital management operating the business will be difficult and the organization will not be able to produce goods and services. Working capital plays a very important role in the success of any organization especially in a manufacturing concern. In a period when there is surplus cash flow in an organization, the effect of working capital may not be notified and this is not always obtained in many organizations. Philip (2001) observed that poor management of working capital in business often leads to low profits and lack of capital investment structure (short and long term). With the present global economic recession, increasing interest rate and therefore it is necessary to assess the working capital management on the financial performance in sunglass Kaduna.
1.3 Objectives of the Study
The study would attempt to achieve the following objectives
i) To analyze the sources of working capital for sunglass limited
ii) to identify the relevance of working capital to operational performance
iii) To identify the components of working capital of sunglass limited
iv) To assess the working capital management on financial performance of sunglass limited
The following questions are formulated to guide the study
(i) What are the relevance of working capital to the manufacturing company
(ii) How can we asses the working capital management on financial performance in sunglass limited Kaduna?
1.4 Significance of the Study
The significance of the study are as follows:
i. Individuals who will have any opportunity to have company on his/her own to serve as a guide in his/her working capital management based on financial record.
ii. Serve as a reservoir of knowledge and secondary data for students companies or other interested individuals or group who may embark on research on related topic in the future
iii. The research will be of great help to the management of Sunglass Limited to trace areas of weakness and possible corrective actions to be taken as to avert similar failure in the future.
1.5 Scope of the Study
This study will be limited to assess the working capital of management on the financial performances of sunglass limited Kaduna, and the study will not cover the production capacity, but only on working capital on the financial performance.
Can't find what you are looking for?
Call (+234) 07030248044.
OTHER SIMILAR BUSINESS ADMINISTRATION PROJECTS AND MATERIALS
A COMPARATIVE STUDY OF NEWSPAPER COVERAGE OF RURAL/URBAN PROBLEMS IN IMO STATE A CONTENT ANALYSIS OF DAILY CHAMPION, THE SUN AND VANGUARD NEWSPAPERS
CHAPTER ONE INTRODUCTION BACKGROUND OF THE STUDY From a global perspective, third-word countries which are mostly found in the continent of Africa have been conspicuously backward in terms of devel...Continue reading »
A CORPORATIVE ANALYSIS OF RISK MANAGEMENT AND CREDIT ADMINISTRATION IN BANKS (A CASE STUDY OF GUARANTEE TRUST BANK, ACCESS BANK AND FIRST BANK)
ABSTRACT The study was aimed at analysingrisk management and credit administrations in banks, case study of Guarantee Trust Bank, Access Bank and First Bank, Maitama, Abuja. The survey research was u...Continue reading »
A CRITICAL APPRAISAL OF CURRENT ASSETS MANAGEMENT IN PUBLIC LIMITED LIABILITY COMPANIES (A CASE STUDY OF NIGERIAN BREWERIES)
CHAPTER ONE INTRODUCTION Background of the study The advent of asset management is a prerequisite to organizational profitability and growth. The management of asset in public limited liability comp...Continue reading »
A CRITICAL APPRAISAL OF THE APPLICATION OF INFORMATION TECHNOLOGY IN NIGERIAN INDUSTRIES(A CASE STUDY OF NIGERIAN BREWERIES)
CHAPTER ONE INTRODUCTION BACKGROUND OF THE STUDY In today’s world, the use of adoption of information technology (ICT) in Nigerian industries could be helpful in the task of capacity building...Continue reading »
A CRITICAL APPRAISAL OF THE STRATEGIES OF EXPORTATION OF MADE IN NIGERIA GOODS (A CASE STUDY OF NIGERIAN EXPORT PROMOTION COUNCIL)
ABSTRACT A critical appraisal of the strategies of exportation of made in Nigerian goods is a topic chosen from marketing field. The research was conducted mainly to examine the strategies adopted b...Continue reading »
A CRITICAL STUDY ON THE EFFECTS OF JOB STRESS ON THE PERFORMANCE OF BANKERS IN NIGERIA (A CASE STUDY OF UNION BANK, CALABAR)
ABSTRACT The study investigated and evaluated job stress and its effects on job performance among members of staff at Union Bank. The study sought to find out how work-related stress could affect the...Continue reading »
What are looking for today?
Format: | Ms Word | ||
Chapters: | 1 - 5 | ||
Pages: | 63 | ||
Attributes: | Questionnaire, Data Analysis | ||
Price: | ₦5000 | ||
Get the complete project » |
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
92,436 people found this useful
IMPACT OF E-LEARNING ON THE ACADEMIC PERFORMANCE OF UNDERGRADUATE STUDENTS (A CASE STUDY OF NATIONAL...
71,591 people found this useful
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR
63,212 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
62,846 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
58,365 people found this useful
THE EFFECT OF ADVERTISEMENT ON CONSUMER BRAND PREFERENCE
57,534 people found this useful