Effect of Working Capital Management on Profitability of Bharti Airtel Limited

Abstract

Managing of working capital is regarded as one of the vital part of business management. The data has been collected for a period of five years i.e. from 2014 to 2019 to examine the impact of Working Capital Management (WCM) on profitability of Bharti Airtel Limited. To analyse the study various ratios have been used. The study used Current Ratio (CR), Quick Ratio (QR), Debtor Turnover Ratio (DTR) and Inventory Turnover Ratio (ITR) as independent variable and Operating Profit Margin (OPM) as dependent variable. This study is purely based on secondary data collected from annual reports and various websites. The research methodology used in this study was descriptive statistics and Pearson's simple correlation analysis in order to know the impact of independent variables on dependent variable. The result of correlation analysis shows that there is negative relationship between CR and OPM, QR and OPM, ITR and OPM but positive relationship between DTR and OPM. The present study reveals that DTR has high influence on profitability.