Working Capital Management of Paper Mill in Pune City - Empirical Analysis

Yashodhan Prakash Mahajan


The well-organized administration of working capital is very essential for an establishment. This is observed on the truth, having excessive working capital signify inefficiency, whereas too small cash at hand signify that the continued existence of business is insecure.

The thought of working capital management is all about the economic and monetary parts of credit, stock, selling, purchasing, saving  and investment policy. The larger the profit markup, the smaller will be the possible level of working capital attached  in creating and selling commodities. In accounting language, the difference between current assets and current liabilities is known as working capital. The important concern in the word "Current" is that it is probable be converted into cash, or possibly be paid from cash, within the stage of twelve calendar months. As a rule of thumb, an establishment desires to tie up small amount of money as much as feasible in working capital.  Nevertheless, there are always trade-offs.  One peculiar problem for business is running out of cash, which consequently leads to failure to make employees’ payrolls, or business might be unable to offer services due to absence of essential resources.[1]A well-planned and executed working capital management practices has a significant impact on firm’s profitability as well as to manage liquidity powers. The objective of this study is to analyze working capital adequacy and its effect on profitability; to explore the relationship between profitability and liquidity of company. This study aims to present empirical analysis about the effects of working capital management on overall profitability and liquidity of paper mill in Pune city.

[1]GehendraSubedi-  Working Capital Management of Nepal Telecom Published, on Aug 05, 2014

And MahaSagar Publications-Research Writing Company, Mumbai India at 05:31


Working capital, ratios, finance

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Working Capital Management Of Paper Mills by K. Madhavi International Journal of Research in Business Management (IMPACT: IJRBM) ISSN(E): 2321-886X; ISSN(P): 2347-4572 Vol. 2, Issue 3, Mar 2014, 63-72

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