Practices of Working Capital Policy and Performance Assessment Financial Ratios and Their Relationship with Organization Performance

Scientific Study , 2011 , 7 Pages

Economics - Case Scenarios

The purpose this study is to highlight the application of working capital policy and the performance
assessment financial ratios and to determine their relationship with organization performance. The target
respondents were the finance executives/financial analysts of the companies. 64 properly filled questionnaires
were processed for analysis. This study concludes that the finance executives consider that the proper
practices of working capital and financial ratios are very important for the growth and performance of the
organization. This research study also finds that there is positive and significant relationship between these
practices and organization performance.

Inhaltsverzeichnis (Table of Contents)

• Abstract
• Introduction
• Literature Review
• Research Methodology
• Hypotheses Statements
• Results and Discussion
• Organizational Performance
• Working Capital Policy
• Performance Assessment using Financial Ratios
• Conclusion and Recommendations

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This study investigates the application of working capital policy and performance assessment financial ratios within the Pakistani corporate sector, specifically focusing on their impact on organizational performance. The study aims to identify the relationship between these practices and organizational success. Key themes explored in the study include:

• The importance of effective working capital management for organizational growth and survival
• The role of financial performance assessment ratios in evaluating company efficiency and performance
• The relationship between working capital policy and financial ratios on organizational performance
• The challenges and opportunities facing the Pakistani corporate sector in implementing these practices
• Recommendations for improving the application of working capital policy and financial ratios in the Pakistani corporate sector

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter introduces the study's objectives and provides background information on working capital management and financial performance assessment in the context of the Pakistani corporate sector. It highlights the importance of these practices for organizational growth and success and discusses the context within which they operate in Pakistan.
• Literature Review: This chapter presents a review of existing research on working capital management, financial performance assessment, and organizational performance. It examines various perspectives on these topics and explores the theoretical framework underpinning the study.
• Research Methodology: This chapter describes the methodology used in the study, including the sample selection, data collection techniques, and analytical methods. It also discusses the questionnaire design and the reliability of the instruments used to measure the variables.
• Results and Discussion: This chapter presents and analyzes the findings of the study. It examines the relationship between working capital policy, financial ratios, and organizational performance, drawing on descriptive statistics and regression analysis. It interprets the results in relation to previous research and explores the implications for the Pakistani corporate sector.

Schlüsselwörter (Keywords)

This study explores the relationship between working capital policy, financial performance assessment ratios, and organizational performance in the Pakistani corporate sector. The research focuses on the application of financial management practices, specifically working capital management and financial performance assessment, within the context of organizational growth and success. The study also highlights the importance of these practices for achieving profitability, resource utilization, and value maximization in Pakistani organizations. Key terms include working capital policy, financial ratios, organizational performance, financial distress, and corporate sustainability performance.

• College: Iqra University (Iqra University, Islamabad Campus)
• Course: Finance - Financial Management
• Authors: Muhammad Naeem Akhtar (Author), Ghulam Shabbir Khan Niazi (Author), Ahmed Imran Hunjra (Author), Majid Rashid (Author), Syed Waqar Akbar (Author)
• Publication Year: 2011
• Pages: 7
• Catalog Number: V196045
• ISBN (eBook): 9783656235699
• ISBN (Book): 9783656237037
• Language: English
• Tags: Finance, Financial Management, Organizational Performance