Abstract

Working capital is regarded as the lifeblood of business. Every business needs funds for two needs - long term funds which are required to create production facilities though purchase of fixed assets, like plant machinery, land, building etc. and short term funds for the purchase of raw materials, payment of wages and other day to day expense etc. These funds are also known as working capital or circulating capital or short-term capital. Working capital needs are generally financed through outside sources. The main objective of the study is to analyze the various components of working capital of the company and to assess the impact of working capital on profitability. The main objectives of the study are to analyze and evaluate the liquidity position of the company and to analyze the components of working capital of the company also to determine the impact of working capital on the profitability.

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