A STUDY ON CASH MANAGEMENT OF EQUIPMENTS
ABSTARCT :
Cash management is one of the most vital functions in financial management, focusing on the efficient collection, disbursement, and usage of cash resources. In capital-intensive industries, where significant investment is required for equipment, effective cash management becomes even more critical. Equipment forms the backbone of operations in sectors such as manufacturing, construction, healthcare, and logistics. Without proper cash flow management for equipment acquisition, maintenance, and replacement, organizations may face operational delays, increased costs, and reduced profitability.
This study is focused on analyzing the cash management practices concerning equipment. The goal is to understand how companies manage their cash flows to ensure smooth procurement, operation, and lifecycle management of equipment. Cash used for purchasing equipment is often a large part of a company’s capital expenditure, and if not planned accurately, it can lead to cash shortages, project delays, or excessive borrowing.
Cash flow management is not just about having enough liquidity; it is about planning cash inflows and outflows to maintain financial stability while meeting operational requirements. For businesses reliant on machinery and technology, proper planning ensures that critical equipment is available and maintained without compromising liquidity. Poor cash management can lead to equipment downtime, reduced productivity, and even reputational damage.
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