International Journal of Scientific Research and Engineering Development

This paper is focused on studying how effective financial management, especially working capital management, influences the growth and stability of a company. Working capital is the heart of day-to-day business operations, and when a company manages it properly, it can continue its production process smoothly, meet customer demands on time, and maintain financial strength.. The main purpose of this project is to study the company’s financial performance, analyze its current assets and current liabilities, and understand how short-term resources are used to support long-term business growth. The paper begins with an introduction to financial management, explaining how it helps a company plan, organize, control, and monitor its financial resources. Financial management is essential in every business because it ensures that money is used in the right areas, unnecessary expenses are avoided, and investments generate good returns. One of the most important parts of financial management is working capital management. This project focuses on this area because it directly affects the liquidity, efficiency, and profitability of the company. If a company does not have enough working capital, it cannot purchase raw materials, pay wages, or manage operating expenses. On the other hand, if it has too much working capital, a large amount of money stays idle without earning profit. The paper studies various components of working capital, such as cash, inventory, receivables, and payables. These components are analyzed using financial ratios like the current ratio, quick ratio, inventory turnover ratio, debtor turnover ratio, and working capital turnover ratio. These tools help in understanding how well the company is utilizing its resources and whether there are any areas that need improvement.