Working Capital Management at British Sky Broadcasting Group Plc

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (The name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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Abstract

In this study we try to explore the concept of working capital management in a holistic context. The main focus of the research is on the effectiveness of working capital management. The research also draws line between working capital management, financial health and profitability of the company. The study follows the secondary research methods for the data collection and data analysis. Finally the research provides the recommendations and suggestions for the future research and also states the implications of the study.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 1: INTRODUCTION7

Overview of the Company7

Aims and Objectives9

Research Questions9

CHAPTER 2: LITERATURE REVIEW10

Introduction10

Overview of Working Capital Management10

Working Capital11

Working Capital Management11

Improving Working Capital Management11

Value Relevance of Cash Flows12

Literature on Working Capital Management14

Preserving Capital18

Optimizing Capital19

Investing Capital19

Raising Capital19

Conclusion21

CHAPTER 3: METHODOLOGY23

Outline of the Study23

Research Procedure- Exploratory Study23

Research Philosophy24

Problem Statement25

Research Design25

Research Method25

Data Analysis26

CHAPTER 4: ANAYSIS27

Investor Ratios28

Liquidity Ratios29

Debt Management29

Asset Turnover Ratios30

Profitability Ratios31

Competitor Analysis31

SWOT Analysis35

CHAPTER 5: CONCLUSIONS & RECOMMENDATIONS36

REFERENCES38

CHAPTER 1: INTRODUCTION

Working capital management is an issue in which finance research is rare. One possible reason behind this reality might relate to the comparative ease with which effective marketplaces correct deviations from optimal working capital guidelines. However, in less effective marketplaces, pervasive among emerging financial systems, working capital management is critical for both organizations ' performance and success. The difference in the market's capability for providing immediate assistance to organizations might describe the differential consequences on firms' success and economical distress. This article explains the basic principles of working capital management, the value of its connections with marketplaces, and how these connections might describe working capital styles around the world.

Working capital management is probably one of the most basic and least examined topics in corporate finance. It should involve the research of the investment strategies in managing resources and its corresponding financing. Nevertheless, this capital is carried out, most of the times without following a formal capital research, and the financing alternatives are not adequately evaluated. This document digs into the basic principles of working capital management exploring the comparative significance of capital marketplaces performance and market and company styles. In this paper we will be looking at the literature on working capital management and will be also analysing British Sky Broadcasting Group Plc financial statements through ratio analysis.

Overview of the Company

British Sky Broadcasting Group plc (British Sky Broadcasting) is a leading U.K. pay television service. It distributes entertainment, news and sports programming to approximately ...