MASTER THESIS
Major: Finance Treasury
WORKING CAPITAL MANAGEMENT IN THIET BI Y KHOA COMPANY
Student Intake : VU NHAN NGHIA : 2 (2012-2013)

Supervisor : NGUYEN VIET DZUNG

Ho Chi Minh city, December 2013

Table of Contents
INTRODUCTION ....................................................................................................................3 1. THEORETICAL BACKGROUND ................................................................................5 1.1. Concept of working capital management ................................................................5 Working capital definition .................................................................................5 Working capital management............................................................................5 1.1.1. 1.1.2. 1.2. 1.3.

Role of working capital management .......................................................................6 Components of working captial management .........................................................7 Account receivables ............................................................................................7 Account payables ..............................................................................................10 Inventories .........................................................................................................12 Optimal level of working capital .....................................................................14 Working capital measurement ........................................................................15 Barriers to optimizing working capital ...........................................................17 Keys to optimizing working capital .................................................................18

1.3.1. 1.3.2. 1.3.3. 1.4. 1.4.1. 1.4.2. 1.4.3. 1.4.4. 2. 2.1.

Optimizing working captial management