IMPACT OF COVID-19 ON WORKING CAPITAL MANAGEMENT OF BIG 5 CEMENT COMPANIES IN PAKISTAN

Abstract

For every business, the major concern is the profit figures they generate during a period. For this purpose to be fulfilled, the top management must keep an eye on the performance ofthe company every time. It is one of the prime duties of management to ensure that a secure and workable environment is suitable for its staff and employees. Due to its effect on the firm's profitability and liquidity, working capital management plays a key role in the success or failure of a company in business. Working capital refers to those available funds that are crucial for the operation of any kind of business. Working capital turnover consists of inventory, receivables, payables, and short-term borrowings, which are dependent on current assets and current liabilities. Working capital management is the essential and most crucial element in preserving an organization's liquidity, profitability, solvency, and continued existence. This study intends to examine how the COVID-19 pandemic has affected working capital management in Pakistani businesses. The review is conducted in light ofsecondary data collected from the company's annual reports for the years 2019-2021 (before and after COVID-19), in order to determine how businesses change their working capital management from the COVID year to the year before. The study includes five businesses that serve local and export markets to varying degrees. To investigate the working capital arrangements ofcorporations before and after COVID 19 effects, a decent board dataset for five cement companies for the years 2019 to 2021 was examined. Working capital requirements of cement companies in Pakistan have increased significantly after COVID-19 due to an increase in aggregate demand, human consumption behavior ofthe people, etc. Various opportunities have been created for the export industries of Pakistan. The objective ofthe current research is to find the impact ofworking capital Management in the cement industry. This research has examined the relationship between current assets and current liabilities with net working capital. In this situation, an interactive dashboard can help. Basically, the purpose ofthis project is to prepare an interactive dashboard by using the E-Views software for enabling the management to be well informed about the financial status of each and every determinant ofthe company. The management then can be able to have an overview about the financial needs ofthe company at a glance on just few clicks. This timely information will help the company to make right decisions at right time and that will be the ultimate motive ofthis dashboard.