Working Capital Management: a Case Study in Ghana Post Company Limited

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Working Capital is the life blood of every business entity a firm is required to maintain a balance between liquidity and profitability while conducting its day to day operations. Liquidity is a condition to ensure that firms are able to meet its short-term obligations and its continued flow can be guaranteed from a profitable venture. To be effective working capital requires a clear specification of the objective to be achieved. Little attention has been paid to working capital management, despite the fact that many companies see such activities at the core of their profitability. This Research examines the implications of a corporation's working capital management in Ghana Post Company Limited. The study is basically an exploratory and analytical research. Data on working capital management variables were gathered from the study area and analyzed base on the objectives of the study. The instrument used in gathering the data for the research work was the collection of secondary data which constituted financial statements of the company. Data analysis was based on ratios and chart analysis. Accounting ratios which were used to assess the working capital policy of the company revealed that Ghana Post had weak financial standing and also inconsistent working capital management polices hence the company having liquidity crises. This project was undertaken so that the recommendation will go a long way to help management to take a decision so as to retain more working capital in the business and then run to the company to attain its objectives.
A Thesis submited to the Department of Accounting and Finance Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the degree of Master of Business Administration (Banking and Finance), 2008