The paradigm shifts that have taken place in the business environment have also impacted working capital management (WCM) practices in the Indian corporate sector. One such sector is the Indian tyre industry. Since inception, the Indian tyre industry has grown rapidly; hence, efficient management of working capital (WC) in this industry has immense importance. The present paper attempts to measure the efficiency in WCM of five well-known companies in the Indian tyre industry during the period 2009-10 to 2018-19. The study has been made using relevant ratios relating to WC and statistical tools and techniques at appropriate places. The study revealed that the efficiency of managing WC was the highest in Ceat Ltd. followed by JK Tyre & Ind. Ltd., MRF, Apollo Tyres and Balkrishna Ind., in that order. The study also indicated strong evidence of positive association between overall profitability and overall efficiency of WCM of Balkrishna Industries during the study period.
Keywords:Working Capital, Working Capital Management, Statistical tools, Profitability, Ratio Analysis, Market, Consumption
The success of a business firm is dependent on the efficient management of its Read Full Article