Gyan Management Journal Year: 2017(Jan-Jun), Volume: (11), Issue. (1) First page: (39) Last page: (49) Online ISSN: A/F Print ISSN: 2250-348X doi:
The Financial Healthiness of Working Capital Management and Profitability Analysis of Select Steel Companies in India
T. Venkatesan1 and Dr. S. K. Nagarajan2
1Research Scholar, Department of Management Studies, Bharathaiar University Coimbatore
2Assistant Professor, Tamilnadu Police Academy, Chennai
Corresponding author email id:
15 Feb 2017
17 Apr 2017
29 Jun 2017
How to cite the Article
The intention of this paper was to study the relationship between working capital management strategy of a firm and its profitability analysis. The fixed effects estimation on select steel companies of India. Financial healthiness has been utilize as a determine of the working capital management, while gross operating profit is used as a substitute for a firm’s profitability analysis. The results reveal that cash conversion cycle of a company has a negative correlation with its profitability. The results also suggest that managers can improve the performance by diminishing the number of day’s receivables and increasing the number of day’s payables. Besides, the outcomes demonstrate that the working capital strategies ought to be formulated taking worldwide macroeconomic circumstances into concern. The findings emphasize the significance of efficient working capital management practices to improve the profitability of steel companies.
Healthiness, Working Capital, Regression Analysis, Current Assets, Liabilities.