Working capital management a study on studio corinthian
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Studio Corinthian is an architecture and engineering consultancy partnership firm. It started its journey in 2013. It specialized in architectural planning,interior and exterior design and implementation of development projects. The main clients of Studio Corinthian are corporate, home owner, government and contactors.Studio Corinthianaim is to be known as a multidisciplinary consulting firm with the ability to complete projects successfully in various fields of consulting services in which it specialize. The slogan of Studio Corinthian is “Behind the horizon of aesthetics”. This report is based on Working Capital Management a study on Studio Corinthian. Working capital management involves the relationship between a firm's short-term assets and its short-term 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. Studio Corinthian has adequate resources to continue its operations and more capable the company is to pay its obligations. A high working capital can be a signal that the Studio Corinthian might be able to expand its operations.In 2015 Studio Corinthian working capital taka 1,993,001 which indicates that it has the ability to pay off its short-term liabilities.In 2015 quick ratio was 2.43 which higher than 2014. Higher quick ratio indicates company may keep too much cash on hand or have a problem collecting its accounts receivable.In 2014 average collection period was 31 days which was slightly high. A longer collection period may negatively affect the short-term debt paying ability of the business. However in 2015 it reduced its receivables collection days approximately 26 days.In 2015, Studio Corinthian earns net revenue per employee taka 878,125 out of total employees 16 person. Finally it can be said that, The architectural firm needs to know not only how much cash will be required to meet expenses in the near term but also the firm‟s general requirements for working capital.