Journal Press India^®

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The term working capital management refers to overall administration of all the current assets and current liabilities of the firm. Current ratio, day’s sales outstanding, day’s inventory, payables period, cash conversion cycle (CCC) are regarded as the measures of working capital management. An attempt has been made in the present study to evaluate the relation between working capital management and profitability of five selected auto ancillary companies in India viz, Bosch India, Motherson Sumi Systems Limited, Exide Industries Limited, Amara Raja Batteries and Wabco India Limited. Using Karl Pearson’s simple and multiple correlation, and regression analysis, it is found that only in case of Amara Raja Batteries there is significant correlation between profitability and factors of working capital management.

Keywords

Working capital; Auto ancillary companies; Correlation; Profitability; Regression.

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