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Author(s):

G.Arun | Mrs. B. Geetha
Keywords:

Working Capital, Liquidity, Profitability, Inventory Management, Receivables, Current Assets, Financial Performance
Abstract:
In Today’s Dynamic Business Environment, Employee This Study Examines How Working Capital Management Influences The Profitability Of Prasanna Precision Tools Between 2021 And 2025. Efficient Handling Of Inventory, Receivables, Cash, And Payables Is Essential For Maintaining Liquidity And Ensuring Operational Continuity In Manufacturing Firms. Using Secondary Financial Data, The Study Applies Tools Such As Ratio Analysis, Trend Analysis, And Working Capital Schedules. Results Show That Working Capital And Liquidity Improved Significantly In 2024–2025, Leading To Better Profitability. However, The Company Continues To Face Challenges Such As Slow Inventory Movement And Inconsistent Credit Management. The Study Concludes That Strong Working Capital Practices Directly Support Higher Profitability.