A Study on Working Capital Management in Sangam Dairy

working capital management involves the relationship between a firm’s short-term assets and its shortterm liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash. This paper explains the working capital management in sangam milk industry and gives analysis to reader with the help of ratios like current ratio, quick ratio, debt equity ratio. These items are referred to as circulating assets because of their cyclical nature. In a retail establishment, cash is initially employed to purchase inventory, which is in turn sold on credit and results in accounts receivables. Once the receivables are collected, they become cash-part of which is reinvested in additional inventory and part going to profit or cash throw-off.