The management of working capital has a significant influence on the determination of the financial condition, liquidity, and efficiency of organizations. It entails the management of short-term resources within organizations in order to enable their operations. Working capital management enables organizations to strike an ideal balance between profitability and liquidity, a factor that facilitates sustainable growth. This study seeks to assess the efficiency of working capital management and investigate its effects on financial performance. The research will utilize a descriptive research approach where data will be collected through both primary and secondary sources. Primary data will be sourced through structured questionnaires administered to 100 respondents involved in the areas of finance and accounting in organizations. Secondary data will be obtained from financial statements and other sources of information. The analysis of working capital will include the investigation of factors such as the management of inventory, accounts receivable and payable, as well as cash flow. The results indicate that working capital management increases profitability, liquidity, and organizational efficiency. More than half of the respondents (72%) indicated that efficient working capital management contributes to financial stability, while 68% witnessed improvements in profitability.

But the research also highlights various issues like receivable delays, poor inventory management, and insufficient financial planning that may impact the performance of organizations adversely. The research thus comes to the conclusion that efficient working capital management is important in order to achieve success in the field of finance.

Keywords-

Working Capital; Financial Performance; Liquidity; Profitability; Inventory Management; Receivables.