[7] WORKING CAPITAL MANAGEMENT IN TAMILNADU NEWSPRINT AND PAPERS LIMITED AT PUGALUR, KARUR DIST

CrossRef D.O.I. :https://doi.org/10.56815/ijmrr.v5i2.2026.53-59

Authors

  • Dr. D Divya Assistant Professor- Department of Management (PG), Sri Ramakrishna College of Arts & Science, Coimbatore, India.
  • Ms. Dharshini B II MBA, Department of MBA, Sri Ramakrishna College of Arts & Science, Coimbatore, India.

Abstract

Working capital represents a firm’s net investment in current assets necessary for daily business operations. It is formally calculated as the difference between current assets and current liabilities, indicating a company’s short-term financial health and operational efficiency. Also known as circulating capital, it constantly changes from within a business cycle. Working capital evaluation depends on factors such as business nature, seasonal fluctuations, production policies, market conditions, and supply chain dynamics. Metrics like the cash conversion cycle (CCC) and return on capital (ROC) help assess cash flow efficiency and cost-effectiveness. Proper management of working capital enhances firm value, reduces financial risk, and ensures smooth business operations.

Keywords:

Working Capital, Net Working Capital (NWC), Current Assets, Current Liabilities, Circulating Capital, Short-term Financial Health, Operational Efficiency

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