1Associate Professor of Commerce, Kanchi Mamunivar Centre for Post Graduate Studies, Affiliated to Pondicherry University, Puducherry, India, E. Mail: drrazhagaia@yahoo.co.in
2Research Scholar in Commerce, Kanchi Mamunivar Centre for Post Graduate Studies, Affiliated to Pondicherry University, Puducherry, India, E.Mail:: radhi_kub24@yahoo.com
JEL Classification: G32, G30
Every organization, whether profit oriented or not, depending upon its size and nature of business needs, requires Working Capital (WC). Efficient WC Management is an integral component of the overall corporate strategy to create shareholders’ value. Sugar Industry in India occupies an important place in the Indian Economy, providing employment to nearly 7.5 million people, directly or indirectly, across the country, besides making the base for over 50 million people for their livelihood from growing and supplying sugarcane, which also contributes annually around Rs.50 billion by way of excise duty, cess, VAT, entry tax and octroi. The present study is aimed at analyzing the relationship between the Working Capital Management and the Profitability of Sugar Industry in India. It is proved that there is a significant positive coefficient with CR, INV and ROI at 5% level. Also there is a significant negative coefficient with QR, WCTR and ROI at 5% level. DTR has highly significant negative coefficientat1%level with ROI. CTR has insignificant positive coefficient with profitability. The overall regression model fit is represented by R2, which is above 50% (0.51).
Inventory Turnover Ratio (INV), Return on Investment (Profitability) (ROI), Working Capital (WC), Working Capital Management (WCM), Working Capital Turnover Ratio (WCTR), Debtors Turnover Ratio (DTR), Creditors Turnover Ratio (CTR), Current Ratio (CR)
