Analyzing the Short-term solvency using Liquidity position of selected Cement companies Vadivel C.1, Dr. Shanthi R.2,,* 1PhD Research Scholar Department of Management Kaamadhenu Arts and Science College, Sathyamanagalam, Erode-DT, Tamil Nadu 2Assistant Professor Department of Management Kaamadhenu Arts and Science College, Sathyamanagalam, Erode-DT, Tamil Nadu *Corresponding author Assistant Professor Department of Management Kaamadhenu Arts and Science College, Sathyamanagalam, Erode-DT, Tamil Nadu
Online published on 8 August, 2018. Abstract Cement being an important medium for construction, its demand is highly correlated with the overall performance of a country and the state of literacy rate. So, a study on cement industry is quite inevitable. Studies on working capital management acquire great significance in the context of growth in the developing economies. When working capital is invested appropriately, it leads to better financial performance. Therefore, the study of working capital management is considered an important job of an industry. Evidently, the present study on working capital management of the select cement industry would be of much interest, as it will bring out how effectively the working capital is employed. It also helps to identify those variables that are responsible for better management of working capital of the cement industry. The study has aimed at measures the Liquidity analysis of the selected cement companies in India. The study has used stratified sampling techniques and two companies were selected. The data were collected from the respective companies annul financial statement during from 2005–06 to 2014–15. Several tools were developed to diagnose the financial strength of the company based on the Financial Statements. The selected cement companies face the problems such as inadequate short-term liquidity, improper utilization of working capital, inefficiency of cash management, delay in payables, and poor profitability. The researcher has suggested suitable measures to improve the efficiency of the working capital management of the select cement companies. Top Keywords Cement Industry, Financial performance, Liquidity, Profitability. Top |