The Effect of Working Capital Management on Profitability of Ceramic Manufacturing Companies in India

Abstract

Working capital administration is concerned about momentary speculation and financing choice of an element and is a significant business necessity and a huge piece of corporate account. Hence, this investigation tried to analyze the impact of working capital administration on productivity of ceramic manufacturing organizations in India. The investigation utilized an example of the five ceramic manufacturing firms recorded at the Bombay Stock Exchange.

The examination utilized secondary information from the ceramic manufacturing organizations from the fiscal reports for a time period from 2016-2020. The information gathered was investigated utilizing the Karl Pearson correlation and the multiple linear regressions. The examination results revealed that the Current Ratio, Quick Ratio, Cash Ratio are significantly positively correlated with Working Capital. The study revealed that RER, EPS, DPS, PER, RC, and RA indicate a negative relationship with the Working Capital.  The co-efficient of working capital is negative and significant.