Scribd
Upload
69 views

The Impact of Working Capital Management On Profitability: Evidence From Sugar Industry in India

This study examines the impact of working capital management on profitability in the sugar industry in India. The sugar industry is well developed and important to India's economy, employing many farmers and laborers. The study uses liquidity ratios and turnover ratios in correlation and regression models to analyze the relationship between working capital management ratios (such as current ratio, inventory turnover, and quick ratio) and profitability. The results show that current ratio and inventory turnover ratio have a significant positive correlation with profitability, while quick ratio has a significant negative correlation.

Uploaded by

jagrutisolanki01
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
69 views

The Impact of Working Capital Management On Profitability: Evidence From Sugar Industry in India

This study examines the impact of working capital management on profitability in the sugar industry in India. The sugar industry is well developed and important to India's economy, employing many farmers and laborers. The study uses liquidity ratios and turnover ratios in correlation and regression models to analyze the relationship between working capital management ratios (such as current ratio, inventory turnover, and quick ratio) and profitability. The results show that current ratio and inventory turnover ratio have a significant positive correlation with profitability, while quick ratio has a significant negative correlation.

Uploaded by

jagrutisolanki01
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

THE IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SUGAR INDUSTRY IN INDIA

AUTHOR(S) Radhika, Gopinathan; Azhagaiah, Ramachandran PUB. DATE January 2012 SOURCE International Journal of Research in Computer Application & Mana;Jan2012, Vol. 2 Issue 1, p107 SOURCE TYPE Academic Journal DOC. TYPE Article ABSTRACT Working Capital (WC) is regarded as the lifeblood of a business. It plays a pivotal role in keeping the wheels of a business enterprise running. However, the management of WC is a delicate area as it involves complex decisionmaking. Every organization whether profit oriented or not, depends on its size and nature of business needs requisite amount of WC. Sugar Industry in India is well developed with a consumer base of more than billion of people. It is also the second largest producer of sugar in the world. There is around 45 millions of sugar cane growers in India and a larger portion of rural labourers in the country largely rely upon this industry. This paper is a maiden attempt on the impact of working capital management on profitability using liquidity ratios, and turnover ratios. Correlation and regression models are applied to associate the relationship and estimate the association between explained and explaining variables. The regression model viz., measure of WC management shows that the ratios like Current Ratio and Inventory Turnover Ratio have highly significant positive coefficient with profitability while Quick Ratio has significant negative coefficient with profitability.
d 6e [email protected] jagrutisolanki a maro passwrd 6e

Literature review
http://www.journal-archieves13.webs.com/285-310.pdf

http://www.iosrjournals.org/iosr-jbm/papers/Vol9-issue5/A0950110.pdf

http://www.facultyjournal.com/webmaster/upload/__A%20Study%20on%20Sugar%20industry%20in%2 0India.pdf

You might also like