An Empirical Study on Short-Term Financial Efficiency and Cash Flow Management of Fathima Engineering Company Private Limited

Abstract

The present study focuses on the short-term financial efficiency and cash flow management of Fathima Engineering Company Private Limited. Effective management of liquidity, receivables, payables, and cash flow is essential for maintaining operational efficiency and financial stability in an organization. The study aims to analyze the short-term financial efficiency and liquidity

position of the company and to examine the efficiency of cash flow, receivables, and payables management during the study period from 2021–2022 to 2024–2025.The study is analytical in nature and is based entirely on secondary data collected from the company’s balance sheets, profit and loss accounts, annual reports, and other financial records. Financial tools such as Ratio Analysis, Comparative Balance Sheet Analysis, Trend Analysis, Cash Flow Statement Analysis, and Cash Conversion Cycle Analysis were used for evaluating the company’s financial performance.The findings of the study indicate fluctuations in liquidity position, cash flow management, receivables, and current liabilities during the study period. The company showed growth in business activities along with increased financial obligations. The study concludes that the overall financial position of the company is satisfactory, but effective management of liquidity and working capital components is necessary for improving financial efficiency and operational performance