Abstract

The purpose of the article is to look into the impact of working capital management (WCM) on the profitability of Indian automobile companies. The article is based on financial data from automobile sector-listed firms in the BSE Dollex 200 from 2011 to 2020. For panel data analysis, a fixed effect model and a random effect model are used to identify the effects of WCM. Finding of this article revealed that there is a negative and significant impact of cash conversion cycle (CCC), inventory conversion period (ICP) and receivable collection period (RCP) on firm’s profitability in automobile industry in India. And highly recommended that CCC, ICP and RCP should be minimised to maximise the profitability in automobile industry in India.

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