Impact of Working Capital on Profitability and Market Capitalization of the Indian Companies: A Study and Sectorial Analysis

Authors

  • Prof. Ritesh Kumar Verma Assistant Professor, Pune Institute of Business Management, India.
  • Aman Agarwal MBA Student, Pune Institute of Business Management, India.

Keywords:

profitability, capitalization, sectorial analysis, capital management

Abstract

Working Capital Management is the key area for sectors and companies in the economy. In the past there had been various researches elaborating about the impact of Working Capital on an organization. Looking into these criteria’s it is important to understand the relationship between working capital, profitability and the market capitalization of a firm. Convenience sampling method is applied to collect the secondary data collected from annual reports of the companies which are further used for data analysis to find out the relation of 3 important parameters. In this research, we would establish the relation of working capital with various other factors statistically.

References

Azhagaiah Ramachandran and Muralidharan Janakiraman, (2009). The Relationship between Working Capital Management Efficiency and EBIT, Managing Global Transitions, Vol. 7 No. 1, pp.61-74

David M. Mathuva, (2010). The influence of Working Capital Management Components on Corporate Profitability: A Survey on Kenyan Listed Firms, Research Journal of Business Management, Vol. 4, pp.1-11

Etiennot, Hernan; Preve, Lorenzo A.; Allende, Virginia Sarria, (2012). Working Capital Management: An Exploratory Study, Journal of Applied Finance, Vol. 22 Issue: 1, pp.162

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Kesseven Padachi, (2006). Trends in Working Capital Management and its impact on firms’ performance: An Analysis of Mauritian Small Manufacturing Firms, International Review of Business Research Papers, Vol.2 No. 2, pp.45-58

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Published

29-11-2021

How to Cite

Prof. Ritesh Kumar Verma, & Aman Agarwal. (2021). Impact of Working Capital on Profitability and Market Capitalization of the Indian Companies: A Study and Sectorial Analysis. International Journal of Management Studies (IJMS), 5(4(3), 34–38. Retrieved from https://researchersworld.com/index.php/ijms/article/view/2013

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Articles