Working Capital Management Accounting, Finance, SPSS Coursework (Coursework Sample)
The aim of this assessment was to stimulate a deeper understanding of a management
accounting issue and encourage development a critical approach to the techniques
available to contemporary managers.
Assess how techniques may be used in different organizational settings.
Locate, extract and analyze information from a variety of sources.
University Name
Working Capital Management
by
Your Name
Lecturer’s Name and Course Number
You are required to write a business report analysing and discussing the Working Capital Management of three businesses listed on The London Stock Exchange from three different sectors. This should be achieved by calculating “Operating Cash Cycle (OCC)” of these businesses. You should evaluate the results by comparison between your companies and industry averages and research into the possible reasons for differences (if any). Your discussion should make references to the related theories on working capital management and operating cash cycle.
Executive Summary
Working capital management (WCM) can assist a company optimize its working capital. A system that can gauge the efficiency of working capital is the CCC. The report will assess the CCC of 3 companies listed on the LSE so as to gauge their effectiveness in managing working capital. The companies shall be from different industries. The data will then be contrasted with data from industry averages to gauge the efficiency of the said companies in the management of working capital.
The manufacturing industry average value of CCC is 29.81 days while the latest CCC data for BAT is -9.01. This shows that BAT was very efficient in the management of its working capital. Vodafone’s latest CCC is 87.83 which is in line with the telecoms industry CCC average value of 88.41. It shows that it is not doing anything as a market leader tip working capital efficiency in its favour. The construction industry average value of the CCC is 20.20 days which is low compared to CRH PLC’s latest CCC of 98.19 which points to an inefficient management of working capital on CRH PLC’s part.
1.0.INTRODUCTION
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