Dr. R. B. Sharma
Assistant Professor, Department of Accounting,
College of Business Administration,
Prince Sattam bin Abdul Aziz University, Al Kharj, Kingdom of Saudi Arabia
Working Capital is the life blood of business. The working capital management is the relationship between an industry’s short term assets and its short term liabilities. The study is attempt to comparative analysis of working capital of selected telecommunication companies in Saudi Arabia. The study is an analytical approach based on secondary data from 2011 to 2015.
The study reveals that the STC has better position in net working capital in comparison to the other telecommunication companies in Saudi Arabia. The study resulted that the selected companies have poor management of working capital and do not maintain the ideal accounting standards. The study concluded that there is one out of all selected companies has highest liquid funds as compare to other companies. It is recommended that the telecommunication companies should maintain the ideal standards of working capital to pay off its short term obligations, liquidity of funds and financial strength.
Keywords: Working Capital, Liquid funds, current assets, current liabilities.