An Evaluation of Working Capital Management: An Overview

In the present environment all organizations are trying to cut the cost of the product and also trying to improve the profitability of organization. For cutting the cost there exist various ways. One way is to do efficient working capital management. If working capital management is sound then there will be minimum idle capital and ultimately it reduces the interest burden of organization and it will help to improve the profitability of organizations. In the present paper an attempt has been made to study the relationship of working capital management and profitability accounting of Narasimha Mills Pvt. Ltd. For the purpose of finding this relationship. Ten years data has been used. From the result of multivariate regression it is found that all independent variables are found significant. It means all the components of working capital management are highly influencing on the profitability of organizations.