Implication of Working Capital Management on the Profitability: A Case Of ONGC LTD, India

Indian Journal of Commerce & Management Studies ISSN : 2240-0310 EISSN: 2229-5674

5 Pages Posted: 26 Mar 2020 Last revised: 22 Jun 2020

See all articles by Vinay Kandpal

Vinay Kandpal

University of Petroleum & Energy Studies Dehradun

P. C. Kavidayal

Kumaun University - Department of Management of Studies

Date Written: May 1, 2013

Abstract

Financial Management basically deals with raising of financial resources and its proper allocation in order to maximize shareholders wealth. For a successful running of an organization fixed and current assets play a crucial role as organization generally invests in these options. A firm’s working capital consists of its investments in short-term assets like cash and bank balance, inventories, receivable and short term investments. Therefore, the working capital management mainly refers to the management of all these individual current assets. In this research paper an attempt has been made to study the components of working capital and the possible implications of working capital management policies on profitability of ONGC Limited. The paper also attempts to analyze the correlation between liquidity, profitability and return on investments of ONGC. The study is based on secondary data collected from annual reports of ONGC for the period 2000 to 2012. In this paper there is an application of correlation and regression analysis to identify the significant impact of Working capital management on the profitability. Working capital Management is essential as it might have a direct impact on profitability and liquidity.

Keywords: Working Capital Management, ONGC, Current Assets, Profitability & Liquidity

JEL Classification: G

Suggested Citation

Kandpal, Vinay and Kavidayal, P. C., Implication of Working Capital Management on the Profitability: A Case Of ONGC LTD, India (May 1, 2013). Indian Journal of Commerce & Management Studies ISSN : 2240-0310 EISSN: 2229-5674 , Available at SSRN: https://ssrn.com/abstract=3546730 or http://dx.doi.org/10.2139/ssrn.3546730

Vinay Kandpal (Contact Author)

University of Petroleum & Energy Studies Dehradun ( email )

Knowledge Acres
P.O. Bidholi via Premnagar,
Dehradun, IN Uttarakhand 248007
India
7417012388 (Phone)

P. C. Kavidayal

Kumaun University - Department of Management of Studies

India

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