The Impact Of Working Capital Management On Profitability And Market Valuation

Abstract

Working Capital Management (WCM) Plays A Vital Role In Ensuring Financial Stability And Profitability Of Firms By Balancing Liquidity And Operational Efficiency. This Paper Examines The Relationship Between WCM, Profitability, And Market Valuation At Supreme Industries Ltd., Pondicherry, Over The Period 2021–2025. The Study Uses Financial Ratios, Turnover Analysis, And Trend Evaluation To Analyze Current Assets And Liabilities. Results Reveal Consistent Improvement In Working Capital And Liquidity Until 2024, Followed By A Decline In 2025 Due To Higher Liabilities And Reduced Cash Holdings. The Findings Align With Global Literature And Highlight The Importance Of Proactive WCM Strategies, Such As Receivables Management And Digitalization, For Sustaining Profitability And Enhancing Market Value.

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