Strategic analysis of working capital management at Banglalink Digital Communications Ltd.

Abstract

The report gives an in-depth perspective on how strategic management of working capital takes place in the context of one of the leading telecommunication companies of Bangladesh, Banglalink Digital Communications Ltd. The main aim of this report is to evaluate the company in terms of working capital management in the areas of the very important aspect such as liquidity, receivables and payables which is vital to the financial and operational performance of the company. The study findings report that although the company Banglalink has managed to sustain a strong liquidity position, there are factors including worsening levels of receivables accumulation and the days of payment to suppliers that have exerted pressure on its cash flow management. Nevertheless, Banglalink has been able to manage its working capital by sustaining a negative cash conversion cycle showing its efficiency in the management of short-term assets as well as liabilities. Also, the centralized treasury operations have enabled Banglalink to coordinate the liquidity requirements across its multinational operations. On the basis of such findings, the report offers some key recommendations on how the working capital efficiency can be improved. Such strategic interventions are meant to strengthen the financial position of Banglalink and thus be in a position to stay on par with the changes taking place in the telecommunications market.