Working Capital Management and UK Listed Companies Profitability Dissertation

working Capital Management and UK Listed Companies Profitability - Dissertation standard inquiry Question How do the working hood management affect the profitability of manufacturing companies of UK? 2. Aim and Objectives of the Research The research piece of music will strive to deal with the blood of companies working detonating device management and their profitability. Working chapiter management is vital area for the result and sustainability of companies and hence, it plays very significant role in find out the level of profitability. However, the corporate environment of different countries varies and hence, management of specific region have their different priorities for achieving exploitation and success. This is the reason correlation amidst the devil or more variables of different regions vary. The primary aim of this paper is to examine the relationship of working hood management with profitability level of the listed manufacturing companies in UK. Working c apital management includes number components that determine the efficiency of the management. Considering these facts, the research will also focus on certain(p) specific objective as follows. To determine the readiness of management in managing working capital of manufacturing listed companies of UK. To baffle and understand theoretical background relating to efficiency of working capital management and political party growth. To determine the relationship between different components of working capital management and components of profitability. To determine influence of efficient working capital management on level of profitability and growth in listed manufacturing companies of UK. 3. Literature Review 3.1. Theoretical backcloth of Research This section will attempt to a theoretical background relation to the working capital management and profitability. Working capital management has always been a very critical area for companies growth and sustainability. Working capital m ainly includes two basic components i.e. current liabilities and current asset. The efficient management of these two types of capital is known working capital management (Siddiqui, 2006, p.279). In order to present a accompaniment background of working capital management, this section will explicitly present need of working capital and its importance for the growth of a federation. Next, it will also analyse the different objectives of working capital management. cost-efficient working capital management is also highly required for managing risks within a company. A company is always exposed to number of risks and the working capital management is directly related to certain risks uniform operational risks, liquidity risks, credit risks, and information reporting risks. An efficient management of working must plug a lower level of risks. Therefore, working capital management can also be termed as a tool to scourge the stated risks that may create threat to sustainability of a company (Sagner, 2010, p.201). another(prenominal) major role of working capital management is that it strives to create a trade off between risk and profitability. In this regard, the risk is technically insolvency which is measure by net working capital (NWC). It has been lay out that many firms can operate in spite of facing technically insolvency. However, in such case, the company suffered from slow poisoned as technically insolvency negatively affect growth, profitability and operational efficacy. If the management is unable to overcome this technically insolvency position, it may lead to business collapse (Khan, 2004, p.26.4). Using the financial techniques like ratio analyses, efficacy level of the working capital can be determined and it also reflect the managements