Relationship between Working Capital Management and Profitability

Garima Sisodia

ISBN 10: 3845434945 / ISBN 13: 9783845434940

Published by LAP LAMBERT Academic Publishing Aug 2011, 2011

About this Item

Neuware -Working capital is the life-blood for any organization. Even profit making firms cannot survive without proper management of working capital. The present study attempts to examine empirically the relationship between profitability and working capital management for NSE listed firms of Indian Steel and Pharmaceutical Industries. A number of ratios belonging to liquidity, turnover and asset structure are used as proxies for working capital management and return on total assets as a proxy for the profitability in the study. The study endorses the significance of working capital management. It demonstrates the crucial influence of working capital management on the profitability of the two Indian industries. Correlation analysis revealed that the profitability of Indian Pharmaceutical Industry is significantly associated with operational efficiency, receivables¿ management and payables¿ management.Books on Demand GmbH, Überseering 33, 22297 Hamburg 56 pp. Englisch.

Seller Inventory # 9783845434940

Bibliographic Details

• Title: Relationship between Working Capital Management and Profitability
• Publisher: LAP LAMBERT Academic Publishing Aug 2011
• Publication Date: 2011
• Language: English
• ISBN 10: 3845434945
• ISBN 13: 9783845434940
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 220W x 150H x 4D millimeters 220 millimeters width by 150 millimeters height by 4 millimeters depth
• Weight: 102 grams

About this title

Synopsis

Working capital is the life-blood for any organization. Even profit making firms cannot survive without proper management of working capital. The present study attempts to examine empirically the relationship between profitability and working capital management for NSE listed firms of Indian Steel and Pharmaceutical Industries. A number of ratios belonging to liquidity, turnover and asset structure are used as proxies for working capital management and return on total assets as a proxy for the profitability in the study. The study endorses the significance of working capital management. It demonstrates the crucial influence of working capital management on the profitability of the two Indian industries. Correlation analysis revealed that the profitability of Indian Pharmaceutical Industry is significantly associated with operational efficiency, receivables’ management and payables’ management.

About the Author

Garima Sisodia has obtained her MBA,M.Phil from ICFAI University, India. She is presently pursuing her Phd in Finance. Her areas of interest is crosslisting of securities. She teaches Financial Management at postgraduate level at IBS-Hyderabad, India. She has presented her papers in national and international conferences.