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International Journal of Creative and Open Research in Engineering and Management

A Peer-Reviewed, Open-Access International Journal Supporting Multidisciplinary Research, Digital Publishing Standards, DOI Registration, and Academic Indexing.
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ISSN: 3108-1754 (Online)
Crossref DOI: Available
ISO Certification: 9001:2015
Publication Fee: 599/- INR
Compliance: UGC Journal Norms
License: CC BY 4.0
Peer Review: Double Blind
Volume 02, Issue 04

Published on: April 2026

DYNAMIC WORKING CAPITAL MANAGEMENT AND FIRM PROFITABILITY: EVIDENCE FROM INDIAN MANUFACTURING FIRMS

K Mounishwaran

Dr R Suyam Praba

School of Management Studies Karpagam College of Engineering Coimbatore Tamil Nadu India
DOI:https://doi.org/10.55041/ijcope.v2i4.084

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Plagiarism Passed Peer Reviewed Open Access

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Abstract

This study analyses the working capital management from 2020 to 2025, using descriptive research and financial ratios to evaluate how effectively the firm balances its current assets and liabilities. The research highlights that while the company is aggressively investing in fixed assets to build a capital-intensive structure, its short-term liquidity is steadily declining due to an increasing reliance on secured loans and a reduction in net current assets. By synthesizing a broad review of global literature, the study emphasizes that a shorter Cash Conversion Cycle is essential for maintaining profitability and operational stability. Ultimately, the findings suggest that the company must strengthen its credit control and inventory management to prevent financial stagnation and ensure sustainable long-term growth.

Keywords: Working Capital Management, Liquidity Management, Cash Conversion Cycle, Financial Ratio Analysis, Inventory and Credit Management

How to Cite this Paper

Mounishwaran, K. (2026). Dynamic Working Capital Management and Firm Profitability: Evidence from Indian Manufacturing Firms. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(04). https://doi.org/10.55041/ijcope.v2i4.084

Mounishwaran, K. "Dynamic Working Capital Management and Firm Profitability: Evidence from Indian Manufacturing Firms." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 04, 2026, pp. . doi:https://doi.org/10.55041/ijcope.v2i4.084.

Mounishwaran, K. "Dynamic Working Capital Management and Firm Profitability: Evidence from Indian Manufacturing Firms." International Journal of Creative and Open Research in Engineering and Management 02, no. 04 (2026). https://doi.org/https://doi.org/10.55041/ijcope.v2i4.084.

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References


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  • •Peer Review Type: Double-Blind Peer Review
  • •Published on: Apr 05 2026
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