Effects of Working Capital Management  on Profitability of Select Automobile  Companies in India

L. Ganesamoorthy; R.Rajavathana

Volume : II, Issue : II, February - 2013

Effects of Working Capital Management on Profitability of Select Automobile Companies in India

L. Ganesamoorthy, R. Rajavathana

Abstract :

Working capital management is very essential one for any organization. Poor working capital management will affect a company in many ways. If a company does not have sufficient liquidity, it will not be able to meet its short term financial obligations, it will decrease its profitability and some time it may lead to shutdown the business. In the study an attempt was made to known the relationship between working capital management and profitability of selected automobile companies such as Tata Motors and Mahindra and Mahindra. The study found insignificant relationship between working capital management and profitability of Tata Motors and Mahindra and Mahindra.