Analysis of Working Capital on Steel Authority of India Ltd

Working Capital management involves managing the relationship between a firm's short term assets and its short terms liabilities. In other words working capital is the capital invested in different items of current assets needed for the business. viz, inventory, debtors, cash and other current assets such as loans& advances to third parties. Those current assets are essential for smooth business operations and proper utilization of fixed assets. Working Capital Management has its impact on liquidity as well as profitability. Working capital is the life blood and nerve center of a business. Just as circulation of blood is essential in the human body for maintaining life, working capital is very essential to maintain the smooth running of a business. No business can run successfully without a working capital. It is traditionally opined that liquidity and profitability are inversely related. The purpose of this paper is to identify the impact of working capital management on profitability of steel authority of India Ltd. from financial year 2015-2019 and today's economy that helps us to Sustain in the future growth. The tools used in this study includes ratio analysis, and statement of change in W. C.