Does Working Capital have impact on profitability? An Evaluation made through financial position of select Indian Meat Processing Industry

Abstract

Working Capital management means management of short-term assets in effective way such as quick conversion of liquid assets into cash. In this paper the author is talking about the Working Capital which performance a vibrantpart in business organization these days. This paper will evaluate the liquidity performance for checking the influence of its on profitability with special reference of Indian Select Meat Processing Industry. The paper is written with an aim to empirically examine the effects of liquidity and working capital components on profitability of select Indian Meat Processing Industry. The study bring out the 08 firms of Indian Meat Companies who are exporting their meat. The study covers through CMIE recordof 10 years from 1^stApril 2008 to 31^stMarch 2018 in total of 80 firms-year observation. ROA and ROE is considered as dependant variables whereas ACP, AIP, APP and CCC are the components of Working capital as the independent variables.Size of the firms (log of sales) and Gross Working Capital Turnover Ratio have taken as control variables. Multiple regression technique to investigate the functional relationship of working capital components. Depending upon the nature of study and type of data, panel data analysis has been incorporated, including pre-testing in the study to arrive at unbiased results.