Working Capital Management Efficiency: A Study on the Small Medium Enterprise in Malaysia

This preliminary study was made with an attempt to analyze the efficiency of working capital management in the selected small medium enterprise companies in Malaysia. The secondary data was derived from Suruhanjaya Syarikat Malaysia. Database of 24 companies are randomly selected from the SME Corp website for four years period from 2010 - 2013. In analyzing the efficiency of working capital management three indexes was used in this current study namely, performance index of working capital management (PIWCM), utilization index of working capital management (UIWCM), and efficiency index of working capital management (EIWCM). The results reveal that the selected small medium enterprise company was less efficient in managing their working capital during this study period.