Journal Name:
- Indian Streams Research Journal
| Author Name | University of Author | Faculty of Author |
|---|---|---|
Abstract (2. Language):
This study aims toexaminethe working capital management and profitability: a study of selected cement
industry in India. Working capital is defined as a major issue in financial decision-making given that it is being a part
of savings in asset which calls for appropriate financing investment. The source of financial and economic data of
the selected companies is based on the NSE (national stock exchange). Five companies are randomly selected from
all listed companies in the NSE, but financial companies are excluded while drawing the sample. The timedimension
of panel data runs yearly from 2011 to 2012. The findings confirm that correlation between long-term
debt and other independent variables has been checked.The results shows that longer the current assets, operating
profit, liquidityand interest coverage ratio is negative relationship with LTD (long term debt) and other three
components of working capital management have a positive relationship LTD. Accordingly, the findings of our
results indicate that debt used by the firm are negatively associated with firm's profitability. Results show that
companies could make a low debt ratio tend to have a shorter period to keep their inventory.Company will use the
internal finance may earn the high profitability.
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