“Role of working capital management in liquidity of the Indian cement companies-A comparative study”

Liquidity plays an important role in the successful functioning of a venture and ultimate objective of any firm is to maximize the profit. Increasing profits at the cost of liquidity can bring serious problems to the firms. Working Capital affects both the liquidity and profitability of a firm. Liquidity of a firm ensures that firms are able to make short-term obligations and its continuous flow assures firms profitability. Conversely, firm that has low liquidity of working capital faces high risk which results to high profitability. For these reasons working capital management should be given proper consideration and one should try neither to maximize nor minimize the liquidity ratios; one should always try to optimize the liquidity of a firm. This study covered a period of 5 years starting from 2009–2013. The data collection source is purely secondary in form. The techniques applied in this study are basically calculation of mean, growth, growth rate, standard deviation and coefficient of variance.