Working Capital Management in GlaxoSmithKline

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TABLE OF CONTENTS



CHAPTER 01: INTRODUCTION1

Background of the Study1

Aims and Objectives2

Research Questions2

Significance of the Study3

CHAPTER 02: COMPANY INFORMATION4

GlaxoSmithKline4

Manufacturing4

Commitment to the Community4

Recognitions5

CHAPTER 03: WORKING CAPITAL MAANGEMENT6

Defining Working Capital6

Working Capital Management: An Overview7

Literature Review9

Working Capital Management and GlaxoSmithKline12

CHAPTER 04: RESEARCH METHODOLOGY14

Method Used14

Ratio Analysis14

Business and Accounting Technique16

Limitations18

Conclusion18

CHAPTER 05: RATIOS19

Liquidity Ratios19

Gearing Ratios19

Profitability Ratios19

Asset Utilisation Ratios20

Investor Ratios20

CHAPTER 06: ANTICIPATED CONCLUSION21

REFERENCES22

CHAPTER 01: INTRODUCTION

Background of the Study

In today's world where companies are looking to stay afloat in a market eminently capitalist, it is essential to develop strategies to advocate for the development of large, medium and small associations. It is this sense, it is necessary techniques are employed to assist the proper development of the entities As regards economic and financial management (Schwartz, 1974, p. 643).

The country is not exempt from this process and decades seeking continuous improvement of all branches of the economy, placing the tourism sector as one of the largest sources of income then the island is evident the importance that encloses the fact that develops all a system of knowledge about the sector, deepen studies and research to lay the theoretical foundations that support the improvement of the elements make up this essential branch and ensure the quality of your practice and obtain best results (Schroeder and Krishnan, 1976, p. 697).

Then in this sense is a fact important that managers and staff general elements dominate these entities management and finance to help the good development of economic processes that performed in the same, quality assurance Service and reversed at the end of the string in the customer satisfaction (Smith, 1964, p. 327).

The necessary components of an organisation's working capital, basically, depend on the type of business and industry. Cash, debtors, receivables, inventories, marketable securities, and redeemable futures can be recognised as the common components of organisation's working capital. However, the question is to recognise the factors that determine the adequacy of working capital based on growth, size, operating cash flow, etc. The inability to understand the determining factors and measurement of adequate amounts of working capital will lead an organisation to bankruptcy (Sullivan and Steven, 2003, p. 375).

A comprehensive evaluation of the financial position is performed by means of indicators of the potential and actual capabilities of the companies to pay current obligations as well as its financial stability in the long run. The performance of the company is regarded as a position of effective use of certain types of resources such as labour, material and financial statements and draw conclusions of the activities of the company. Formal and traditional financial analysis may proceed in accordance to the accounting requirements and reporting, but actually creates a misleading picture of financial health. This is due to the fact that managers, taking advantage of considerable flexibility provided by accounting principles, manipulate the data on financial results in order to overestimate, based on which it is impossible to make strategically important decisions.

Aims and Objectives

The aim of this research study will explore the management of working capital of a Glaxo Smith ...