Year: 2026
Type: article
Abstract: Accounts receivable management is an important component of working-capital management. Credit sales generate revenue, but cash is received only when customers pay. Delayed collections can restrict funds available for operating expenses, supplier payments, and other business activities. This paper examines accounts receivable management and its implications for working capital and financial performance in India's metalworking and lubricant industry. It uses a descriptive analytical approach based on on-the-job training (OJT) observations, focusing on overdue receivables, collection patterns, segment-level overdue trends, and profitability during the observation period. Available records indicate frequent late payments, a concentration of overdue balances among a relatively small group of accounts, and an increase in segment-level overdue balances toward the end of the period. Financial performance varied, with losses in the earlier months followed by positive results later. These findings suggest that overdue balances and customer concentration can create cash-flow risks even when a business records accounting profit. The paper recommends a customer-wise credit-risk dashboard, risk-based collection priorities, documented escalation rules, regular ledger reconciliation, and closer coordination between sales and finance. As a descriptive case study, it identifies patterns and managerial implications but does not establish that receivables alone caused changes in profitability. Keywords: accounts receivable management; working capital; overdue receivables; collection efficiency; cash flow; profitability; metalworking and lubricant products; case study
Author: Sonali Bhiungade
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7225336112