A Study On Working Capital Management And Its Impact On The Financial Performance Of K.C.P. Sugar And Industries Corporation Ltd
Keywords:
Working Capital Management, Current Assets, Current Liabilities, Liquidity, Profitability, Ratio Analysis, Correlation Analysis, Regression Analysis, K.C.P. Sugar and Industries Corporation Ltd.Abstract
Working capital management plays a vital role in maintaining the financial stability and operational efficiency of manufacturing organizations. Effective management of current assets and current liabilities enables firms to maintain adequate liquidity, improve profitability, and ensure
uninterrupted business operations. The present study examines the working capital management practices of K.C.P. Sugar and Industries Corporation Ltd. by analyzing the changes in working capital and key liquidity ratios over the study period. The research evaluates the relationship between
working capital components and the company's financial performance using financial statement
analysis and statistical techniques. Secondary data were collected from the company's annual reports and financial statements for the selected financial years. The analysis includes statements of changes in working capital, ratio analysis, correlation analysis, regression analysis, and ANOVA to examine the significance of working capital on organizational performance. The findings indicate that efficient management of inventories, receivables, cash balances, and current liabilities has contributed positively to maintaining operational efficiency and financial stability. However, fluctuations in
current assets and liabilities indicate the need for continuous monitoring of working capital policies. The study concludes that proper working capital management significantly influences the profitability and liquidity position of K.C.P. Sugar and Industries Corporation Ltd. and recommends strengthening inventory control, receivable management, and cash planning to improve overall financial
performance.
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