Working Capital Management and its Impact on Profitability of Selected Cement Companies in India

Abstract

Management of capital has a major role in an organisation. The capital of a company is classified into fixed and working capital. Fixed capital is the long-term capital used for investment in assets. Working capital is the short-term capital required to meet the company’s regular expenses. It provides life and strength to the company and decides the profitability and solvency of the business. The management of working capital is thus important for all companies. Ineffective management of working capital will lead to industrial sickness. In this regard, the present study focuses on understanding working capital management and its impact on the profitability of selected five cement companies using Trend Analysis and Pearson’s Correlation Coefficient.