*Professor, Department of Commerce, Sri Venkateswara University, Tirupati, Andhra Pradesh, India
**Assistant Professor, Department of Business Administration, Annamacharya PG College of Management Studies, New Boyanapalle, Rajampet, Kadapa (Dt) – 516126, Andhra Pradesh, India
***Assistant Professor, Annamacharya Institute of Technology and Sciences, New Boyanapalle, Rajampet, Kadapa (Dt) – 516126, Andhra Pradesh, India
Online published on 16 August, 2012.
Management of working capital is one of the most important and key resource of an organization for carrying out for its day to day operations. In this paper an attempt is made to assess the significance of working capital by selecting the two important financial ratios such as working capital, total assets to sales ratio and debtors to sales and to determine relationship between current assets and current liabilities, to carried out set objectives, data were collected from the financial reports of the company from 2000–01 to 2009–10, it was found that the position of current ratio, acid test ratio, working capital ratio, inventory turnover ratio are satisfactory because these ratios are exceed the standard bench mark and there is a positive relationship between current assets and current liabilities(r =+0.47).
Acid Test Ratio, Current Ratio, Debtors to Sales Ratio, Inventory Turnover Ratio, Total Assets to Sales Ratio Working Capital
