Abstract
M.Comm.
Working capital management is often one of the most neglected areas in the management of an operation. Given the cyclical nature of Samancor's business the focus on working capital should not be limited to periods of recessionary nature when margins and cashflows are under pressure. It should rather be seen as a continuous process
whereby the performance of an operation is also measured against its ability to manage working capital levels in a cyclical industry. Several points have been identified via a literature study and questionnaire and may assist in the management thereof. Any
permanent reduction in working capital levels is of benefit not only to the cashflow of the organisation, but may in fact significantly improve the return on assets under its control.