A STUDY ON WORKING CAPITAL MANAGEMENT WITH REFERENCE TO MICRO POLYESTER LAMINATION

This study aims to analyze the working capital management practices at Micro Polyester Lamination and their impact on the company's financial performance. The methods employed include a detailed review of the company's financial statements, ratios related to working capital management (such as the current ratio, quick ratio, and cash conversion cycle), and comparison with industry benchmarks. The results show that while the company maintains a relatively stable working capital, inefficiencies in inventory management and accounts receivable cycles affect its liquidity and operational flexibility. A strong correlation was found between working capital management practices and profitability, where the efficient management of current assets and liabilities contributed to a better return on assets. The conclusion highlights the need for Micro Polyester Lamination to focus on optimizing inventory turnover and accelerating receivables collection to improve its cash flow and operational efficiency. Additionally, the study suggests that better management of working capital could lead to enhanced profitability and competitiveness in the market.