Paper Contents
Abstract
Financial Management is that managerial activity which is concerned with the planning and controlling of firms financial resources. Working Capital Management is an important tool of financial management. It helps to provide more information regarding financial operations. It deals with the management of all short-term assets and short-term liabilities. It helps to know about the day-to-day liquidity position of the company, and day to day operations of the company. All techniques will surround around the working capital management. It places an important role in financial management. Comparing all others techniques under financial management, it provides more information regarding the firm. To reach optimal working capital Management firm manager should control the trade-off between profitability and liquidity accurately. Efficient management of working capital is one of the pre- conditions for the success of an enterprise. From this point of view, the purpose of this study is to investigate the relationship between working capital management and profitability of K.C.P Sugers & Industrial Corportaion Ltd, Vuyyuru. In this study the effect of different variables of working capital management including the Cash conversion cycle and Current ratio on the profitability of the firm has been studied. The study shows that there is positive relationship between Current Ratio and Profitability of firms. This increasing the current ratio results into profitability increase.
Copyright
Copyright © 2024 Abbisetti Bhumika Udaya Lakshmi, Dr. Bandaru Venkata Reddi Naidu . This is an open access article distributed under the Creative Commons Attribution License.
