Working Capital Management and Liquidity Position Analysis of Travancore Titanium Products Limited

J. Afina Shushmi; V. Darling Selvi

doi:10.34293/management.v13iS1-i1-May.10897

J. Afina Shushmi II MBA, Department of Management Studies, St. Xavier’s Catholic College of Engineering Chunkankadai, Nagercoil, Kanyakumari
V. Darling Selvi Professor and Head, Department of Management Studies, St. Xavier’s Catholic College of Engineering Chunkankadai, Nagercoil, Kanyakumari

DOI: https://doi.org/10.34293/management.v13iS1-i1-May.10897

Keywords: Working Capital Management, Liquidity Position, Ratio Analysis, Cash Conversion Cycle, Travancore Titanium Products Limited, Public Sector Undertaking, Titanium Dioxide.

Abstract

This paper deals with working capital management which is a crucial element of financial management since it guarantees operational continuity through maintaining a balance between current assets and current liabilities. This work will study working capital management and liquidity of Travancore Titanium Products Limited (TTPL), a government-owned PSU manufacturing titanium dioxide pigment in Thiruvananthapuram, Kerala. Specifically, the study aims at analyzing working capital management and liquidity of TTPL over a five-year period of 2019-20 to 2023-24. Secondary data sourced from annual reports and financial statements of the company were used for this purpose. Comparative balance sheet analysis, ratio analysis, and cash conversion cycle and trend analysis were used as analytical tools. Results show that TTPL demonstrated a persistent negative net working capital along with liquidity ratios which failed to meet the benchmark standards in all years under review. As for the cash conversion cycle, it was gradually improving. There was also profitability revival in 2022-23, followed by a capital injection by the government in 2023-24.