Working Capital Management and Profitability: An Empirical Analysis

Working Capital Management (WCM) is concerned with the problems that arise in attempting to manage current assets and current liabilities. Management of adequate working capital is essential as it has direct impact on profitability and liquidity. An attempt has been made in this book to study the relation between working capital management and the corporate profitability and liquidity of 1198 manufacturing firms for a period of 2005-2010.The data collected from the companies listed by Center for Monitoring Indian Economy (CMIE). With limited access to credit and short term funding, it is increasingly important that companies focus on working capital management to free up funds and optimize liquidity.