A Study on Working Capital Management of Keltron Equipments in Trivandrum- Using “Z-Score Test”

Abstract

The study of working capital behavior occupies an important place in financial management. The earlier emphasis of financial management was more on a long-term financial decision. Working capital management, which is concerned with short – term financial decision, appears to have been relatively neglected in the literature of finance. The developing economies generally face the problem of inefficient utilization of Resources available to them. Capital is the scarcest productive resource in such economies and hence a proper utilization of these resources promotes the rate of growth, cuts down the cost of production and above all, improves the efficiency of the productivity system. Fixed capital and working capital are the dominant contributors to the capital of a developing country.
Fixed capital investment generates productive capacity, whereas working capital makes the
utilization of that capacity possible.