This study focuses on analysing the working capital management of Lakshmi Mills Company Limited, Kovilpatti, a leading textile manufacturer in South India. The research aims to evaluate the efficiency of managing current assets and liabilities and their impact on the company’s liquidity and profitability. The study uses secondary data from annual reports and financial statements for a five-year period, employing tools such as ratio analysis, trend analysis, and comparative statements. Findings reveal fluctuating trends in liquidity ratios, with declining current and quick ratios indicating insufficient short-term solvency. The company shows moderate performance in inventory and asset turnover, but profitability ratios reflect a downward trend in recent years. The analysis highlights that improper control of receivables and high current liabilities have strained liquidity. However, efficient cash and inventory management during certain years improved operational performance. The study suggests adopting tighter credit policies, modernizing production processes, and enhancing financial planning for better working capital utilization. Overall, the research emphasizes that effective working capital management is essential for sustaining financial stability and ensuring long-term profitability in the textile sector.