Steel Industry Case Study

900 Words4 Pages
ABSTRACT This research present paper examines the financial performance of identified units in the steel industry in India in terms of working capital management. Working capital management refers to the administration of all components of working capital cash, marketable securities, debtors and stock and creditors. Working capital is one of the powerful measurements of the financial position. The words of H. G. Guthmann clearly explain the importance of working capital. “Working Capital is the life blood and nerve center of the business. The goal of working capital management is to manage the firm’s current assets and current liabilities in such a way that a satisfactory level of working capital is maintained. In several units, there is adequate working capital but the mismanagement of working capital increases the costs and reduces the rate of return. The efficient management of working capital minimizes the cost and can do…show more content…
The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development. The world steel production has been increasing from year to year and has already crossed one billion tons. The rapid increase has been led by China accounting for more than 45%of world steel production. China is not only the largest producer of steel (627 million tons) it is also the largest consumer of steel (576 million tons) followed by the United States and

More about Steel Industry Case Study

Open Document