WORKING CAPITAL MANAGEMENT AND ITS IMPACT ON PROFITABILITY: CASE ON INDIAN POWER SECTOR
In various empirical researches it was proved that working capital management have its impact on liquidity and profitability with the help of distinct methods on different sectors. This paper examines working capital management and its impact on profitability in Power sector of India. The research span taken into consideration is 2015-2019. The data of research is secondary data taken from annual reports of companies. The data has been used to calculate various key ratios such as current ratio, quick ratio, inventory turnover ratio, working capital turnover ratio, current asset turnover ratio to assess their behavior in the Power Sector in India. Mortaals test model was used to evaluate the nature of liquidity in the study period. This study helped in evaluating whether the proportion of working capital employed by the power sector companies was optimum and was giving maximum profitability. This study would help companies to determine their performance with respect to the capital invested by them in the projects.