Impact of working capital management on performance of excel tube corporation

An ideal business needs sufficient resources to keep it going and ensures that such resources are maximally utilized to enhance its profitability and overall performance. Working capital management and its impact on firm's performance has been studied significantly by different researchers. Most of these and other researchers identify significant association between working capital management and firm's performance. It has however been discovered that some methods that managers use in practice to make working capital decisions do not rely on the principles of finance, rather they use in practice to make working capital decisions do not rely on the principles of finance. The fact that an organization makes profit is not necessary an indication of effective management of its working capital because a company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. The present study aims at analyzing the impact of working capital management on performance of an organization which has been carried out on Excel Tube Corporation and reiterates the importance and significance of effective utilization of working capital for an organization. The data has been collected from secondary sources like annual reports published the organization, and trade journals from international repute organizations. Ratio analysis techniques have been adopted to analyze the data to determine the financial performance of Excel Tube Corporation.