A Study on Working Capital Management on Financial Performance : Manufacturing Sector

Authors

  • V Priyanga Ph.D. Scholar, Department of Commerce, Alagappa University, Karaikudi, India
  • SP Mathiraj Professor, Department of Corporate Secretaryship, Alagappa University, Karaikudi, India

Keywords:

Cash Conversion Cycle, Current Ratio, Profitability, Return on Asset, Return on Equity

Abstract

The article aims to demonstrate the study of working capital management on financial performance of the manufacturing companies in Tamil Nadu. The simple random sampling method used from 7 manufacturing companies in Tamil Nadu listed in BSE for the period 2012 to 2022. Descriptive statistics, Pearson correlation multiple regression were used for the study. The study aims the effect of working capital component i.e. cash conversion cycles, current ratio, debt equity ratio and the profitability Return on Assets (ROA) and Return on Equity (ROE). The data reflected the output that the cash conversion cycle has a negative impact on the profitability. Thus suggest the companies to manage the working capital effectively and efficiently will helps the organization to improve the profitability and capture the market.

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References

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A Study on Working Capital Management on Financial Performance : Manufacturing Sector

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Published

11/28/2023

How to Cite

Priyanga, V., & Mathiraj, S. (2023). A Study on Working Capital Management on Financial Performance : Manufacturing Sector. Maayan International Journal of Commerce and Foreign Trade, 1(2), 7–11. Retrieved from https://mijcft.com/index.php/mijcft/article/view/11

Issue

Volume 01 Issue 02 (November 2023)

Section

Articles

License

Copyright (c) 2023 Maayan International Journal of Commerce and Foreign Trade

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This work is licensed under a Creative Commons Attribution 4.0 International License.