Working Capital Management in Selected Indian Companies

Abstract

Large cap firms are well-established businesses with a substantial market presence and a long history of industry leadership in areas such as payments to suppliers, debt management, and inventory management. Small cap firms are those with an equity market value of less than Rs 250 crores, which means they have a lower revenue and client base. They typically comprise start-ups or businesses in the early stages of development. Working capital is a typical metric for comparing an entity's current assets to its current obligations, and it indicates a company's capacity to cover current liabilities with current assets, such as revenue collection, supplier payments, debt management, and inventory management. The goal of this study is to evaluate how large and small companies manage their working capital and how that affects their profitability and capacity to run their businesses efficiently. To do so, secondary data Prowess will be used to gather information on major and small cap companies listed on the BSE. The research will be conducted using ratio analysis, namely working capital, collection, and inventory turnover ratios. The research will also look at how these businesses manage their working capital differently depending on their size, profitability, time horizon, and other factors