A Study on Accounts Payable Management and Financial Performance Analysis in Manufacturing Companies

This study examines accounts payable management practices and their effect on financial performance in the garment manufacturing sector, with special reference to Intimate Fashions India Pvt. Ltd. Effective accounts payable management is critical for ensuring operational liquidity, maintaining supplier relationships, and sustaining competitive advantage in a highly dynamic market. The research analyses key financial ratios — including stock turnover, debtors turnover, creditors turnover, working capital turnover, fixed asset turnover, current ratio, liquid ratio, and net profit — over a five-year period (2021–2025). Both primary data (n = 76 respondents) and secondary data from published financial statements were utilised. Statistical tools including percentage analysis and chi-square test were applied to interpret findings. Results indicate that the company generally maintains sound liquidity and improving debtor collection efficiency, while creditor payment periods show moderate fluctuation. The chi-square test reveals no significant association between employees' years of experience and their perception of the accounts payable process structure. The study concludes with actionable recommendations encompassing process automation, technology adoption, supplier relationship management, and enhanced internal controls to optimise accounts payable performance. Keywords: Accounts Payable Management, Financial Performance, Ratio Analysis, Garment Industry, Working Capital, Liquidity