A Diagnostic Study of Impact of Working Capital Management on Profitability of Indian Companies in Telecommunication Sector

Abstract

The main aim of this research was to examine the performance of working capital management of telecommunication – service provider over a period of ten years span from 2010 to 2019.The working capital management components viz. current ratio, inventory, debtors and creditors have been considered as independent variables and profitability is considered as dependent variable. The author has applied Matrix of Co-efficients of Correlations, Descriptive Statistics and regression coefficientto find to impact of the working capital on profitability. It is noticed that current ratio has negative association with return on equity and it is moderately important in terms of influencing the profitability. The remaining variables namely debtors, creditors and inventory ratio are found to be insignificant as far as their influence on profitability of the enterprise is concerned.