A research report submitted in partial fulfillment of the requirement for the award
of the bachelor degree of accounting and finance in the business sector (BAF-BS) of
Mzumbe University
The firm management process of holding short-term assets such as stock, debtors, cash
at bank, cash in hand and marketable securities is so-called Working Capital
Management (WCM). When WCM well designed and implemented it helps in creation
of business value. While conducting day to day operational activities a business is
required to maintain balance between its liquidity and profitability. To measure the
financial performance the business used various indicators which help in reflecting
financial health status of the business. A most of researchers conducted their research in
the field of banking, insurance, transportation, tourism and Agriculture industry to
discuss its Financial Performance, roles and contribution in our community; even these
industries played a significant role in economic development of our country. But there
were various problem and challenge in their trade practices and other related operational
activities occurred as the result of poor WCM even not being discussed. With the help of
this research study we will Discuss working capital management and its impact on
profitability of ENSOL company and through this company we will bring the real
picture to other companies on how and why they should be very serious about their
WCM by consider its impacts on profitability .Through various ratios like current ratio,
liquid ratio, inventory turnover ratio, creditor turnover ratio ,debtor turnover and return
on assets were used to find out the real trend working capital management of ENSOL
company and its impact on profitability as well as its future prospects.