Working Capital Performance of Corporate India: An Empirical Survey for the Year 2000-2001

Abstract:     
The present study is in continuation of our earlier attempt of developing quantitative benchmarks at the firm as well as at the industry level to evaluate Working Capital Management Performance of Corporate India from time to time. The previous attempt was based on the methodology designed by CFO Europe Magazine and REL Consultancy Group in their first Working Capital Survey of 1997. This time we experimented with a number of new parameters and different weights in the overall score to have better picture of working capital management performance of Corporate India. Finally, we selected three financial parameters for this purpose - CCE, DOC and DWC. The present study provides their estimates by using data of 427 companies over the period 1998-99 to 2000-01 for each company and for each industry. It is believed that the presence of these three in the overall working capital performance criterion not only helps in performance evaluation but also will capture the dynamics of risk-return trade off.

Number of Pages in PDF File: 33

Keywords: Working Capital, Performance Evaluation Days Working Capital, Days Operating Cycle

JEL Classification: G39

Accepted Paper Series