Working Capital Managment And Its Impact On Profitability: A Study On Hindustan Uniliver Limited

Abstract

Working Capital Management Is A Vital Component Of Financial Performance As It Ensures That An Organization Maintains Adequate Liquidity To Meet Its Short-term Obligations. This Study Examines The Relationship Between Working Capital Management And Profitability In Hindustan Unilever Limited (HUL) Using Secondary Data From FY 2020–21 To FY 2024–25. Analytical Tools Such As Ratio Analysis, Working Capital Turnover, Changes In Working Capital, And Regression Analysis Were Used To Evaluate Liquidity And Efficiency. Findings Reveal That HUL Maintains Strong Inventory Management, Moderate Liquidity, And Stable Profitability, Although Working Capital Turnover Fluctuated Due To Variations In Current Asset Levels. Regression Results Show That Profitability Ratios Explain Part Of The Variation In Working Capital Turnover, Although Not At Statistically Significant Levels. The Study Concludes That Improving Receivable Management, Optimizing Inventory, And Enhancing Cash Flow Strategies Can Further Strengthen Profitability.

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