A study on Working Capital Management of Indian Tobacco Company (ITC) Limited

A well designed and implemented working capital management has a significant contribution for firm’s profitability as well as to maintain liquidity powers. The purpose of this study is to assess working capital adequacy and its impact on profitability; to investigate the relationship between profitability and liquidity of firms. The management of short term assets and liabilities refers to the management of working capital. Working capital means the amount of funds that a company requires for financing its day-to-day operations. Working Capital includes the current assets and current liabilities areas of the balance sheet. Working Capital Management is the process of planning and controlling the level and mix of current assets of the firm as well as financing these assets. The main objectives of this study are to examine and evaluate the working capital management in Fast Moving Consumer goods industry, examine the management pattern of inventory, liquidity position and receivables management. This also finds the relationship between Working Capital Efficiency and Profitability.