Working Capital Efficiency and Its Impact on Liquidity & Profitability: An Analysis of India's Maharatna Central Public Sector Enterprises

Abstract

Purpose of the study: This study focuses on the Maharatna central public sector enterprises' working capital management. Research Design: This research employs an analytical approach. This paper is based on secondary data; for the study,13 Maharatna companies have been taken. The study's time bound is from 2020-21 to 2024-25. For ratio analysis, mean, correlation matrix, and multiple linear regression have been used to analyse the data. Findings: It has been concluded that only QR and ITR have a significant impact on ROE. No significant relationship was found between liquidity and profitability, except that ROE has a moderately positive correlation with QR. Implications: The suggestion will be useful to practitioners and academicians in the field of business management and the finance of companies. Furthermore, this research will enlighten the decisions of working capital management strategies of the public sector undertakings in India Limitations: This study only took 5 years from 2020-21 to 2024-25. Additionally, we have only taken Maharatna companies. Also, other than working capital management, we did not include other aspects of financial management

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