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Working Capital Management (WCM) is a crucial aspect of financial management that directly influences a company’s liquidity and profitability. This study examines the impact of working capital management on profitability at Kanaech India Private Limited, an automotive component manufacturing company. The study is based on secondary data collected from financial statements over a five-year period from 2021–22 to 2025–26. The analysis is carried out using ratio analysis, trend analysis, regression analysis, and correlation analysis. The findings reveal a declining trend in profitability indicators such as Net Profit Ratio and Return on Assets (ROA), indicating inefficiencies in managing working capital components like inventory and receivables. Although liquidity ratios remain above minimum standards, a consistent downward trend suggests weakening financial stability. The study recommends improved receivables management, cost control, and efficient utilization of assets to enhance profitability.
Keywords:
Working Capital Management, Profitability, Liquidity, ROA, Financial Performance, Ratio Analysis
Cite Article:
"A Study on Impact of Working Capital Management on Profitability at Kanaech India Private Limited", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2456-3315, Vol.11, Issue 4, page no.c289-c293, April-2026, Available :http://www.ijrti.org/papers/IJRTI2604307.pdf
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000205516
ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator