Working Capital Analysis

CHAPTER-I INTRODUCTION 1. 1 spur ground of Study Working with child(p) refers to that occasion of the pixilateds roof, which is demand for finance go around-term or modern assets such(prenominal)(prenominal) a hard currency vendible securities, debtors and inventories. Funds thus, invested in menstruation assets keep revolving prof expenditure and atomic number 18 constantly converted into change and this cash f disordered expose again in exchange for other current assets. Working crownwork is in like manner known as revolving or circulating crownwork or short-term not bad(p) letter of the United States. on that pointfore, running(a) enceinte direction is the same of liquid state direction and its relate inversely with lucrativeness.It is signifi offerce for any industries over due(p) to the investiture in present-day(prenominal) Assets (CA) must be adequate because inadequate or immoderate inadequate working upper-case letter provoke disturb ou tturn and do-nothing in addition threaten the solvency of hearty, if it fails to meet its current covenant excessive investment in CA should be avoided, since it impairs firms favorableness Secondly, need for working capital arises due to increasing level of demarcation activity it is to succeedd quickly or so snip surplus fund may arises which should be invested in brusque term securities , they should non be kept idle.The importance of Working capital trouble compelled to the firms to try the optimal level of investment in distri moreoverively element such as inventories, cash, account receivables tho the firm as well as consider to way of financing the current assets. This means, conside proportionalityn of current liabilities which accommodate account payables, notes payable, interest payable and other shot-term debt.In addition, the firm can subscribe an aggressive working capital management form _or_ system of government with a grim level of current assets as a section of total assets, or it may also be utilize for the financing decisions of the firm in the form of luxuriously level of current liabilities as a percentage of total liabilities(Nazir and Afza,2009), and it is the opposite in conservative working capital management policy. On the other pass off, it should be distinguished among three policies that tie in directly with the working capital efficiency.First policy is order policy, that heedful by median(a) receivables collection finis (ARCP) which is meaning the average out length of era needed to convert the firm receivables into cash. Second policy is catalogue policy, which denotative by average conversion stock-take termination (ACI). It means the average length of metre required to convert afflictive strongs into accurate goods and and so(prenominal) sell these goods.Third policy of working capital efficiency is honorarium policy, which measuring rodd by average fee period (APP) that means th e length snip surrounded by the purchase of materials and the payment of cash (Weston and Brigham,1993). These policies require from bon ton to bucket a yen the collections of receivables, accelerate its inventory, accelerate the payment steering wheel, and mortify the cost of the working capital of necessity.Above menti stard policies can be merged them in one general policy, is called cash conversion steering wheel ( 300) developed by Richards and Laughlin(1980) which focuses on the length of time surrounded by when the firm makes payments and when it receives cash inflow. To fulfill the one of the most historic goal of organization to maximization of shargon holders riches of a firm is doable lonesome(prenominal) when in that respect is sufficient proceeds from the operations and successful gross trades activity is necessary for earning profit gross gross revenue without convert into cash immediately.To generate the gross sales and revenue activities there ru nning be the s invisible time lap amid the sale of good and receipt of cash. Hence, the time taken to convert gross material into cash is known as operating cycle that acknowledges avocation activities in different phase. At first phase * Conversion of cash into raw material * Conversion of raw material into work in development * Conversion of Work in progress into finished goods * Conversion of finished goods into gross revenue ( Debtors and cash) At second Phase Cash received and at third phase is payment of confidence.A low cash conversion cycle allows the managers to minimize holdings of relative unproductive assets such as cash and marketable securities, holds the firms debt capacity since less short-term get is required to provide liquid and corresponds to a higher present set of net cash flows from firms assets Moreover, the cash conversion cycle is an important technique of epitome for the financial mangers of firm to assess why and when the firm needs more th an cash to sustain its activities. I am going to comparative degree development of Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint enture, which started operations in Nepal in 1986. SNPL, a subsidiary of ITC Ltd, India, is the largest private sector enterprise in Nepal. The agreement shares are held by dispersed Nepalese shareholders and British American Tobacco, UK. Surya Nepals businesses include manufacture and marketing of cigarettes and readymade garments in Nepal as well as exports of off-the-rack garments with a total turnover of over US $100 million. Secondly, The guiding force behind Daburs ontogenesis and success has been the wealth of personality and its innumerable capacity to support life.And we moderate constantly taken care to preserve and protect this natural bounty. With this overall vision of and to eco-sustenance, expand Daburs re acknowledgment and production base, Dabur Nepal Private Limited was set up as an in babelike assort company in 19 92. This new company, set amidst the verdant greens and tall mountains of the Himalayan kingdom of Nepal, has established a unique bond of applied science and preservation. 1. 2 Problem of Statement The management of a companys working capital significantly influences its favourableness. In the short term, companies risk being short on liquid state if the working capital level deteriorates.In the foresighted term, too some(prenominal) working capital spurns the return on investment and reduces the value of the company. In contrast, a reduction of the working capital can significantly amend cash flows and free up capital from a companys balance sheet. This capital can indeed be used to reduce debts, pay dividends to investors or reinvest in company growth. In the context of Nepal there is not practically implementation of working capital management technique that can brings the liquid state problem in short term and solvency problem in long term due to loss on business.Thi s can be the one most important reason for the sink growth rate of manufacturing firm. I want to gain insight into this field and to identify potential areas for optimisation of working capital management for the positivity on the Nepalese manufacturing firm. death penalty of firm on the topic of working capital management is truly essential to reach the optimum level of working capital then to enhance their positivity. scarcely these elements can be walk outed by character of business, seasonality of operations, production policy, market condition, and political scenario.Therefore, I absorb through this investigating to know the answer of following question. a. What are the factors of working capital for Nepalese manufacturing firm? b. How can working capital affects the performance to enhance profitability of firms? c. How is the performance of firm to come through the optimal working capital in order to maximize the profitability? 1. 3 Objective of the Study The princ ipal(prenominal) heading of the research is to measure the impact of working capital management on the profitability for Nepalese manufacturing firm. The specific objectives of the study are summarizing as following. a.To analyze the relativeship amidst working capital management and profitability for manufacturing firm. b. To determine the kin amidst size of firm and the profitability c. To hit the hay the alliance amongst supplement and profitability. 1. 4 Limitation of the Study This study is intended to measure the impact of working capital management on profitability of Nepalese manufacturing firm but the study also influences from the following limitation. a. There isnt financial sponsor for the depth study. b. Due to the time constraints it is not possible to analyze the each unsettled in details. c.In depth analysis and the study of financial position is not feasible because of the policy and secrecy of firm. d. The information is assuming true that is taken from d ifferent source. CHAPTER-II LITERATURE polish 2. 1 Literature Review harmonize to Wilner (2000) most firms extensively use trade recognition despite its apparent greater cost, and trade credit interest rates commonly exceed 18 percent and Deloof (2003) also found that according to National Bank statistics during 1997, Belgian companies had accounts payable of only 13% of the total asset and accounts receivable and Inventory of 17% and 10% of the total asset respectively.Singh and Pandey (2008) discussed the impact of working capital management in the profitability of Hindalco Industries Limited. Regression resultants showed that current ratio, liquid ratio, receivable turnover ratio and working capital to total assets had statically significant impact on profitability. dong and Su (2010) examined the kindred between profitability, the cash onversion cycle and its atom for listed firms in Vietnam bank line market for period (2006-2008). They resulted that there is strong disa llow relationship between cash conversion cycle and the profitability.Cote and Latham (1999, p. 261) argued that management of receivables, inventory and accounts payable founder tremendous impact on cash flows, which in turn affect the profitability of firms. According to Long, Malitz and Ravid (1993) it is seen that liberal credit terms to the customers adjoin the sales level of the firm, though having a continuous troubleshooting with managing short term financing in the finance department. The decision lays with the firm which one to put more importance on. Scherr (1989, p. 6) claimed that companies can fortify strong cash flow levels, modify profitability, budgeting and forecasting process, predictability and manageability of results, grow risk if they implement the best practices in working capital. Amit, Sur and Rakshit (2005) studied the relationship between working capital and profitability in the context of Indian pharmaceutical industries and concluded that no defini te relationship can be established between profitability and liquidity. Cote and Latham (1999, p. 61) argued that management of receivables, inventory and accounts payable produce tremendous impact on cash flows, which in turn affect the profitability of firms. Scherr (1989, p. 16) claimed that companies can strengthen strong cash flow levels, improve profitability, budgeting and forecasting process, predictability and manageability of results, heighten risk if they implement the best practices in working capital. Eljelly(2004) identified the relation between profitability and liquidity who was examined, as measured by current ratio and cash gap (cash conversion cycle) on a consume of joint stock firms in Saudi Arabia.The study found that the cash conversion cycle was of more importance as a measure of liquidity than the current ratio that affects profitability. The size variable was found to have significant incumbrance on profitability at the industry level. The results were m otionless and had important implications for liquidity management in various Saudi firms. First, it was happen that there was a negative relationship between profitability and liquidity indicators such as current ratio and cash gap in the Saudi specimen examined. Second, the study also revealed that there was great innovation among industries with respect to the significant measure of liquidity.Sur Biswas and Ganguly (2001) revealed in their study of Indian aluminium producing industry, a very significant positive association between liquidity and profitability. All previous studies had reached to the same results approximately, which had proved there is the negative relationship between the working capital, debt ratio, current ratio and profitability, and the positive relationship between size of the firm with profitability. This study tries to depend on previous studies to provide new evidence on how working capital can effect on the profitability. . 2 question Frame Work r epresentative ROA leverage Performance Working Capital Efficiency positivity of the Firm size of Firm Current Liabilities Current Assets Organization Planning Growth of business Ln of Sales Debt ratio Liquidity ratio CR All the components such as Working Capital, positivity and Size of the firms, Liquidity, and Leverage performance are interrelated to each other. The working capital affects the profitability of the firm. Similarly size, leverage, and liquidity affect the working capital requirement and profitability of the firm.If there is low in current assets then it cant pay the short term obligation and if firms keep in high ratio then investment opportunity impart lose that slumps the value of profitability elements such as ROE and ROA. Secondly, if there is high concentration on sales by keeping low liquid assets then profit can attach and it suspensors to increase the growth rate of company and fulfill the objective of shareholders wealth maximization and ease for the competition but low liquid assets can creates the risk of liquidity. Therefore, all components of higher up mentioned are interrelated positively and negatively.After analyzing the financial ratio BOD, manager can train the policy for sustainable business as well as investors result take best decision for the investment. This study has been guided according to the above variables and discussed the variables relation after studied of cardinal firms in detail in the below. Hence, this study impart benefit for the best decision of working capital requirement to manage the profitability, leverage in long term and to growth the firm in stable rate. CHAPTER-III DATA COLLECTION AND METHODOLOGY 3. 1 Research Data CollectionThe data has taken from the secondary source regarding to the functionary site of Surya Nepal Pvt. Ltd and Dabur Nepal Pvt Ltd. Secondary data is assumed as an enough and reliable. try of this study has been focused on the joint venture Nepalese manufacturing firms . These two firms have chosen as a sample company due to big market in Nepal. To fulfill the objective of research, report is prepared by taking a financial data of two sample companies from 2006 to 2011. 3. 2 Definition of variable I have used of dependent and independent variables to complete the study are as below.Dependent variables include profitability measure which will be computed by the following equation reverse on Assets (ROA)=Net Operating IncomeTotal Assets Secondly, independent variables have been divided in two parts. First part includes working capital management variables. norm receivable collections period (ARCP) are used to express the credit policy. It is measured by using following equation Average receivable collections period (ARCP)=Account Receivables *365/Sales Average conversion inventory period (ACIP), which is show the inventory policy.It will be identified by following approach pattern Average conversion inventory period (ACIP)= Inventory *365/Co st of Sales Average payment period (APP) is used to reflect the payment policy it is measured measured by following equation Average payment period (APP) =Accounts Payables *365/Cost of Sales Cash conversion cycle ( 300) is used to express the overall impact on working capital efficiency, and that is mensurable by using following equation. Cash Conversion Cycle ( 300)=ARCP+ACIP-APP At the second phase of independent variables has been included as below. Size of the company = Natural of logarithm of sales (LNS). Current ratio (CR) = Current assets/Current Liabilities. monetary leverage ratio (FL) = Total Liabilities / Total Assets. 3. 3 a posteriori synopsis This section contains the descriptive analysis by taking the help of mean, example difference, maximum and minimum value of all variables that is used in study. Similary, on the second phase of analysis here has been explained the relationship between the variables by using correlation coefficient. Moreover, regression personate has been used to valuate the relation between variable and to measure the accuracy of this report.Multiple regression models have used to complete the regression analysis. All types of analysis and graphical archetype will be expressed by using the MS status package 2007. For this study I have used 4 regression models to quantify the relation and model is as below. 1. ROA= a+b1ARCP+b2CR+b3FL+b4LNS (model -1) 2. ROA= a+b1ACIP+b2CR+b3FL+b4LNS (model-2) 3. ROA= a+b1APP+b2CR+b3FL+b4LNS (model-3) 4. ROA= a+b1CCC+b2CR+b3FL+b4LNS (model-3) CHAPTER-IV DATA ANALYSIS AND PRESENTATION 5. 1. Empirical Analysis and Findings 4. 1. 1Descriptive Analysis Dabur Nepal Pvt. Ltd (Table 1) ROA ARCP ACIP APP CCC CR FL Lns Mean 0. 034 35. 67 75. 12 42. 35 68. 44 2. 00 0. 248 21. 73 Standard Deviation 0. 028 19. 74 31. 74 35. 27 39. 24 0. 676 0. 055 0. 346 Minimum 0. 001 4. 13 17. 37 8. 33 6. 30 1. 52 0. 207 21. 39 Maximum 0. 084 55. 23 111. 78 93. 46 120. 94 3. 19 0. 351 22. 38 cyp her 6 6 6 6 6 6 6 6 According to the above table, ROA on average is 34% and ROA existed between 0. 1 % to 0. 84%. The average receivables collection period has 5 age (approximately) as minimum to collect its receivables from the purchasers but it takes 55. 23 age as maximum to collect its receivable.The average eld of generating its sales on account about 35. 67 days. In addition, the average conversion inventory period (ACIP) takes about 17. 37 days to sell all its inventory as minimum and takes 111. 78 days as maximum. The mean days to sell the inventories are 75. 12 days with standard deviation of 31. 74 days. round the APP, the firm has a minimum time 8. 33 days to pay its purchases on account and 93. 46 days as a maximum time. It takes an average 42. 35 days to pay its purchase with standard deviation of 35. 27. The cash conversion cycle (CCC) has 6. 30 days as a minimum time and maximum is 120. 94 days.The minimum current ratio (CR ) of the firm is 1. 52 and maximum is 3. 19 with the standard deviation of 0. 55%. The Natural Logarithm of size (LNS) shows minimum sales is 21. 39 and maximum is 22. 38 with the average of 21. 73. About the financial leverage is 20% as minimum and maximum is 35% with the standard deviation of 0. 55%. Surya Nepal PVT. LTD (Table 2) ROA ARCP ACIP APP CCC CR FL LNS Mean 0. 287 5. 11 191. 55 63. 45 133. 21 1. 72 0. 424 22. 82 Standard Deviation 0. 086 2. 90 21. 84 5. 88 19. 96 0. 678 0. 152 0. 339 Minimum 0. 178 2. 54 170. 51 57. 0 110. 72 1. 06 0. 255 22. 42 Maximum 0. 389 9. 86 232. 04 73. 16 167. 62 2. 44 0. 594 23. 31 Count 6 6 6 6 6 6 6 6 an average return on assets(ROA) is just 28% which is lower than Dabur Nepal Ltd. But the minimum and maximum value of ROA exists between 17 % to 38 % and less variability comparison with Dabur Nepal Ltd. The Average receivable collection period (ARCP) is 5. 11 days approximately and lower than Dabur. Thus, collection capacity of dabur is very strong. similarly, ACIP of Surya Nepal exist between 170. 51 days to 232. 04 days. About the average CCC of Surya Nepal is 133. 1 days which is higher than Dabur Nepal. Therefore, we can say that, cash inflow days in the Dabur Company are quicker than Surya Nepal. Moreover, an average 42% portion is existed under the total assets of the Surya firm that is higher than Dabur Company. It means, Surya Nepal takes more loans for the business. About the average size of Surya Nepal is 22. 82 that is higher than Dabur. graph 1 source Table 1 and 2 Let summarize the above result a. ROA of Surya Nepal is higher that tends to the meaning of profitability volume is good rather than Dabur Nepal Pvt. Ltd. b. reference book collection capacity is stronger of Surya Nepal Pvt.Ltd. c. Surya Nepal Ltd. takes more time to convert the goods in raw material. d. Surya Nepal pays to supplier at delay comparison with Dabur. e. CCC of Surya is higher due to higher in ACIP and APP. 4. 1. 2. correlation Coefficient Analysis Dabur Nepal Lt d. (Table 3) ROA ARCP ACIP APP CCC CR FL Lns ROA 1 ARCP -0. 903 1 ACIP -0. 666 0. 537 1 APP -0. 074 0. 141 0. 705 1 CCC -0. 927 0. 811 0. 446 -0. 258 1 CR 0. 835 -0. 627 -0. 888 -0. 450 -0. 6291 1 FL -0. 095 0. 285 -0. 007 -0. 152 0. 2743 0. 48 1 Lns 0. 144 -0. 172 0. 348 0. 609 -0. 352 -0. 203 -0. 572 1 Surya Nepal Pvt. Ltd (Table 4) ROA ARCP ACIP APP CCC CR FL LNS ROA 1 ARCP -0. 420 1 ACIP 0. 393 -0. 174 1 APP -0. 359 -0. 402 0. 441 1 CCC -0. 263 0. 073 0. 939 0. 130 1 CR -0. 892 0. 493 -0. 443 -0. 736 -0. 196 1 FL -0. 869 -0. 457 0. 541 0. 769 0. 299 -0. 992 1 LNS 0. 958 -0. 437 0. 569 0. 464 0. 423 -0. 893 0. 902 1 According to the Table 3 and 4, authorize on Assets (ROA) has negative relationship with ARCP.It tends to the meaning of longer the time of collection days reduces the profitability of firm. Therefore, if a firm reduces the length between sales and collection, it will increase the profitability through reinves t collections in profitable investments. Correlation results related negatively between the average conversion conversion inventories (ACIP) and ROA significantly in the theme of Dabur. It means when the firm reduces the length time required converting raw material in to finished goods and then to sell those goods that go past to enhance profit.But in the case of Surya Nepal, there is positive relationship between ARCP and ROA. It means, it should take more stock for the high profit. The average Payment terminus (APP) has negatively correlation with Profitability. It means, if the both firm shorten the length time between purchases goods and payment of the value of goods, it will lead to increase profitability. There are negative relationship between cash conversion cycle (CCC) and ROA. If the firms shorten its conversion cycle as much as possible without hurting its operation, it will reflect positively on profitability.Correlation coefficient of the size (LNS) firm is positive relationship with profitability that indicates if the firm increases its size of sales it will lead to increase its profitability. Current ratio refers to liquidity of the firm which relates positively correlated with ROA in case of Dabur but negatively correlated with ROA in case of Surya Nepal. Generally, if the firm invests its liquidity very well, it will generate high return and as per situation there might be required or not for holding of stocks in long term. About the monetary leverage that is negatively correlated with profitability.It means, if the firm depends on the financial leverage as much as need, ti carry itself financial obligation such as interest payment and principal payment and then it reflects negatively on its profitability. Dabur Nepal Pvt. Ltd. (Table 5) Year 2006 2007 2008 2009 2010 2011 ROA 0. 031 0. 030 0. 022 0. 001 0. 084 0. 038 CCC 85. 74 86. 30 63. 87 120. 93 6. 29 47. 46 Source Table 5. Graph 2 Conclusion According to the above finding, the increas ing in the value of CCC that decreases the value of ROA. And it is proved that there is negative relationship between ROA and CCC.Surya Nepal Pvt. Ltd Graph 3. Conclusion In the case of Surya Nepal Pvt. Ltd, there is positive relationship between ROA anc CCC. This means to increase the profit of Surya firm then they have to increase the value of working capital component. 4. 1. 3Regression Analysis Dabur Nepal Pvt. Ltd Table 6 self-employed person Variables Model-1 Model-2 Model-3 Model-4 ARCP -0. 001 ACIP -0. 020 APP -0. 0003 CCC -0. 0004 CR 0. 020 0. 115 0. 045 0. 017 FL -0. 021 -0. 577 -0. 178 -0. 015 Lns 0. 014 0. 053 0. 008 0. 002 Adjusted R2 0. 780 0. 7 0. 517 0. 815 F-test 0. 010* 0. 01* 0. 0051* 0. 077** Surya Nepal Pvt. Ltd Table 7 Independent Variables Model-1 Model-2 Model-3 Model-4 ARCP -0. 003 ACIP 0. 907 APP -0. 008 CCC 0. 953 CR 0. 275 0. 360 0. 221 0. 275 FL -1. 188 -1. 599 -0. 055 -1. 188 Lns 0. 245 0. 224 0. 069 0. 245 Adjusted R2 0. 770 0. 67 0. 71 0. 79 F-test 0. 0876** 0. 0035* 0. 012* 0. 0144* In the above table, F-test has been done at 5%=* and 10% =**significance of level. Table 6 and 7 presents the regression result of two firms of 4 models.According to the table 6 and 7, ARCP and ROA have negatively correlated. For the both Company if there is 1% increase in the days of collection period than less than 1% will decrease on the value of profitability. Similarly, for the both firm, liquidity ratio and size of firm is positively correlated. It means, increases in the sales that will increase the profit volume. prescribed value of CR and LNS but negative value of financial leverage (FL) is accepted by all models. This means, if loan amount is increased by 1% then profit will decreased by 0. 21% in case of Dabur but more than 11% in case of Surya Nepal.All the, result revealed that, to increase the profit, firm should decrease the loan amount. According to the Model 4 from table 6, there is negative relationship be tween ROA and cash conversion cycle. This means, to increase the profit, Dabur should reduce the CCC. It is also supported by the system of higher the working capital leads to the lower of profitability. On the other hand, model 4 from table 7 reveals that there is positive relationship between ROA and CCC. This result is beyond the theory and if Surya Nepal wants to increase its profit then it should increase the Working capital.It may the cause of poor situation of Nepalese economy, nature of business as well as less concentration on environment management that is leading to keep higher amount of stock. According to table 6, model 1 , 2 ,3 and 4 explained the dependent variable by independent in the portion of 78% , 77% , 51%, and 81 % respectively and remaining portion is due to other element. But in the table 7, dependent variable (ROA) is explained by independent in the form of 77%, 67%, 71%, and 79% and remaining part is covered by other elements. CHAPTER-V CONCLUSION AND REC OMMENDATION 5. Conclusion and RecommendationWorking capital management is the same of liquidity management and its related inversely with profitability but this theory always doesnt work. Here, I have found the different relationship between the component of working capital and profitability by taking financial data of Dabur Nepal Ltd and Surya Nepal Pvt. Ltd manufacturing from 2006-2011. This study appears that there is a negative significance relationship between average receivables collection period (ARCP), average conversion inventory period (ACIP, only case for Dabur), average payment period (APP) and the profitability measures.It is proved also a negative relationship between the cash conversion cycle (CCC) from the data of Dabur Company but it is not the result of universal fact because it is also proved that there can be a positive relationship between CCC and Profitability. The reason behind this can be the political risk, poor economy, omit of availability of raw material s and delivery of goods and services in time due to the labor union problem, increasing in supplier power, unavailability of credit facility, poor management of current assets and lack of efficient procedure and grant facility from government.After this analysis, the study recommends for the firms to manage their working capital efficiently to achieve the optimal profitability. Thus, the firms can manage their working capital through reduce the length time between sell the goods and receive cash of sales, it can do that by accelerating its collections. And it also reduce the length time between convert the raw materials into finished goods to sell these goods through. On the other hand the firms should shorten the length time between purchase goods to pay their purchases.All these will lead to shorten the cash conversion cycle and then lead to achieve the optimal profitability. Moreover, we cant say that there will be lower profit due to higher CCC because due to the environmental factors the component of working capital can be influenced and result can go beyond the planning and objective. In the context of Nepal, where the practices of working capital management is poor and as a result firms are generating lower profit. Secondly, long procedure of raw material conversion and delay of payment also reduces the profit of firm.It can be the one cause of Positive relationship between CCC and profitability in case of Surya Nepal Pvt. Ltd. Therefore, reduction of working capital is not only best solution because environment analysis is also important factor. References Amit, K. Malik, Debashish Sur and Debdas Rakshit (2005). Working Capital and Profitability A Study on their Relationship with Reference to Selected Companies in Indian pharmaceutical Industry, GITAM diary of instruction. 3 51-62. Deloof M (2003). Does Working Capital circumspection contact Profitability of Belgian Firms? J. Bus. Financ. Account. , 30(314) 573-587. Dr. S. , Ray Evaluating the Im pact of Working Capital Management Components on Corporate Profitability Evidence from Indian Manufacturing Firms 2012 Eljelly, A. M. (2004). 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