An Overview of the Influence of Working Capital Management on Profitability

  • S. Dhanalakshmi Assistant Professor, Department of Commerce (Accounting & Finance), S.A. College of Arts & Science, Chennai, Tamil Nadu, India
  • K. Komalavalli Assistant Professor, Department of Commerce, Vallal P.T.Lee Chengalvaraya Naickar Arts & Science College, Chennai, Tamil Nadu, India
Keywords: Working Capital Management, Competitive Advantage, Profitability


Working Capital Management is crucial for a company, akin to the company’s life force, enabling it to thrive and survive in the competitive market. In this fiercely competitive world, each passing day holds immense significance in propelling businesses to the next level. This study delves into an analysis of various studies conducted globally over the past few years. Its primary aim is to compile and synthesize the results of these studies, identifying key factors and the impact of maintaining the necessary balance of working capital. Most studies have consistently concluded that a shorter cash conversion cycle yields greater benefits.

Abstract views: 225 times
PDF downloads: 130 times