Working Capital Management Case Study

Words: 2103
Pages: 9

“ROLE OF WORKING CAPITAL MANAGEMENT IN LIQUIDITY OF THE INDIAN MANUFACTURING COMPANIES- A COMPARITIVE STUDY”
Dr. Vijaishri Tewari (Student Counselor, IIIT-Allahabad )
Mr. Ravi Shankar Pandey (MBA-IT, IIIT-Allahabad)
Ms. Saumya Pandey (MBA-IT, IIIT-Allahabad)

ABSTRACT:
This paper shows the effect of working capital management on liquidity of the Indian Manufacturing companies. Liquidity plays a major role in the continuous and successful functioning of a firm. Liquidity is an ability to convert asset into cash quickly. Assets that can easily be converted into cash without the much loss of time and money are known as liquid assets. Working capital affects both the liquidity and profitability of the firm.

INTRODUCTION
Every business
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OWOLABI, Sunday Ajao, ALU Chituru Nkechinyere (2012) carried out a research on Effective working capital management and Profitability. Based on the calculated ratio analysis o the companies it was observed that some of the companies had a longer collection period and shorter payment period .Thus , the longer the operating cycle, the more risky and less profitable the firm becomes.
Ben-Caleb, Egbide, Olubukunola, Uwuigbe, Uwalomwa (2013) carried out a research on Liquidity management and Profitability of Manufacturing companies in Nigeria. The conclusion is that the cardinality of liquidity management in any organization cannot be overemphasized.
Niranjan Mandal, Dr. B.N. Dutta Smriti Mahavidyalaya, burdwan, Suvarun Goswami, University of Burdwan, carried out a research on Impact of working capital management on Liquidity, Profitability and Non-Insurable risk and Uncertainty bearing: a case study of Oil and Natural Gas Commission (ONGC). The study concluded that working capital management is very much useful to ensure better productive capacity, good profitability and sound Liquidity of an
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The primary aim of this study is the comparative analysis of working capital management in liquidity of the Indian manufacturing companies.
RESEARCH TYPE
The type of research used in this study is the Analytical research. Firstly the facts or information already available is considered. Then we have analyzed them to make a critical evaluation of information.
SAMPLE DESIGN
The study has been carried on by selecting four Indian manufacturing companies. They are: Bajaj Auto, Apollo Tyres, Larsen & Toubro and Hindustan Unilever Ltd. The data of these companies has been taken of 5 years starting from 2010-2014.
DATA COLLECTION