A STUDY ON WORKING CAPITAL OF MARUTI SUZUKI

Abstract

The efficient management of working capital is critical to the financial health and operational success of any business. This study aims to analyze the various components of working capital—including inventory, receivables, payables, and cash—and assess how their management influences overall organizational performance. The research investigates the relationship between working capital management and profitability, liquidity, and risk management within selected companies. Using both primary data (questionnaires and interviews with finance professionals) and secondary data (annual reports and financial statements), this study examines key working capital ratios such as the current ratio, quick ratio, working capital turnover ratio, and cash conversion cycle. Statistical tools like correlation and regression analysis are applied to measure the impact of working capital efficiency on firm profitability. The findings suggest that optimal working capital management significantly enhances liquidity and profitability while reducing operational risks.