Working capital management in globalised steel companies

For a flourishing working of a business organization fixed and current assets play a crucial role as organization commonly invests in these options. An effort has been made in this paper to study the various working capital components and the outcome of working capital management policies on profitability of 4 steel companies. This paper also tries to study the correlation between liquidity, profitability and profit before tax (pbt) of selected steel companies. The study is based on secondary data collected which had been collected from annual reports of different steel companies and prowess (CMIE database) for the period 2012 to 2016. In this paper, there is an application of correlation analysis to identify the considerable effects of working capital management on the profitability. The management of operating capital is essential as it might persuade a direct impact on profitability and liquidity. In the present study, four steel sector companies operating in India has been selected. For analysis accounting ratios and appropriate statistical tool had been used. Keeping in this view, a study of an analysis of working capital management in steel companies is undertaken in the present work.