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

33 Pages Posted: 21 Nov 2004  

Manoj Anand

UIAMS, Panjab University, Chandigarh

Chandra Prakash Gupta

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.

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

JEL Classification: G39

Suggested Citation

Anand, Manoj and Gupta, Chandra Prakash, Working Capital Performance of Corporate India: An Empirical Survey for the Year 2000-2001. Management and Accounting research, January - June 2002. Available at SSRN: https://ssrn.com/abstract=621103

Manoj Anand (Contact Author)

UIAMS, Panjab University, Chandigarh ( email )

Sector - 25
CHANDIGARH, UT 160014
India

No contact information is available for Chandra Prakash Gupta

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