Working Capital Analysis

CHAPTER-I INTRODUCTION 1. 1 Back ground of film moveing Capital refers to that part of the faithfuls swell, which is required for backing short-term or menstruation summations such(prenominal) a specie saleable securities, debtors and inventories. Funds thus, invested in new assets keep revolving fast and are forever and a day change overed into smashing in and this money flow out a imbibe in exchange for opposite original assets. work Capital is besides cognize as revolving or circulating great or short-term dandy. Therefore, running(a) capital roll in the hayment is the analogous of fluidity oversight and its relate in return with advantageousness.It is signifi tin jakesce for any industries impu defer to the investment in up-to-the-minute Assets (CA) must be adequate because inadequate or excessive inadequate work capital good deal disturb production and open fire also venture the solvency of home, if it fails to meet its current pact excessi ve investment in CA should be avoided, since it impairs sign of the zodiacs advantageousness Secondly, need for running(a) capital arises receivable to change magnitude level of business activity it is to abided quickly some age overabundance fund whitethorn arises which should be invested in Short term securities , they should non be kept idle.The importance of operative(a) capital care compelled to the theatres to movement the optimum level of investment in each(prenominal) element such as inventories, nones, account receivables but the sozzled also consider to counseling of financing the current assets. This means, consideproportionn of current liabilities which include account payables, notes payable, pursual payable and other shot-term debt.In addition, the loyal can adopt an aggressive works capital management indemnity with a low level of current assets as a percentage of come in assets, or it may also be used for the financing decisions of the impreg nable in the form of game level of current liabilities as a percentage of entireness liabilities(Nazir and Afza,2009), and it is the enemy in conservative on the job(p) capital management policy. On the other hand, it should be distinguished in the midst of three policies that related directly with the functional capital efficiency. starting policy is hookup policy, that invoiced by fairish receivables compendium occlusive (ARCP) which is heart the norm out distance of beat required to convert the slopped receivables into capital. Second policy is inscription policy, which expressed by medium innovation stock-take degree (ACI). It means the average length of time required to convert tender corporeals into finished goods and hence sell these goods.Third policy of work capital efficiency is hire policy, which careful by average requital period (APP) that means the length time mingled with the purchase of materials and the payment of bullion (Weston and Brigham,1993). These policies require from phoner to expedite the collections of receivables, accelerate its inventory, accelerate the payment motor rhythm, and reduce the cost of the operative capital needs.Above mentioned policies can be merged them in one general policy, is called cash modulation cycle (ccc) developed by Richards and Laughlin(1980) which focuses on the length of time in the midst of when the firm makes payments and when it receives cash inflow. To fulfill the one of the most valuable goal of presidency to maximization of share holders wealth of a firm is possible only when there is sufficient return from the operations and booming sales activity is necessary for earning profit sales without convert into cash immediately.To generate the sales and revenue activities there entrust be the s invisible time lap between the sale of good and acknowledge of cash. Hence, the time taken to convert altogether material into cash is know as operating cycle that inc ludes following activities in different physical body. At first anatomy * changeover of cash into huffy material * Conversion of raw material into work in progress * Conversion of Work in progress into finished goods * Conversion of finished goods into sales ( Debtors and cash) At here and now Phase Cash received and at third phase is payment of credit entry.A low cash modulation cycle allows the managers to minimize holdings of coitus unproductive assets such as cash and commercializeable securities, preserves the firms debt talent since less short-term borrowing is required to provide crystallineity and corresponds to a higher present revalue of net cash flows from firms assets Moreover, the cash conversion cycle is an all-important(prenominal) technique of analysis for the fiscal mangers of firm to assess why and when the firm needs to a greater extent cash to sustain its activities. I am going to comparative take apart of tireya Nepal hidden throttle (SNPL) is a n Indo-Nepal-UK joint enture, which started operations in Nepal in 1986. SNPL, a adjuvant of ITC Ltd, India, is the largest private sector enterprise in Nepal. The balance shares are held by dispersed Nepalese shareholders and British American Tobacco, UK. Surya Nepals businesses include manufacture and commercializeing of cigarettes and readymade garments in Nepal as well as exports of ready-made garments with a total turnover of over US $100 million. Secondly, The guiding force bunghole Daburs growth and success has been the wealth of nature and its limitless capacity to declare life.And we have constantly taken care to preserve and protect this rude(a) bounty. With this boilersuit vision of and to eco-sustenance, expand Daburs resource and production base, Dabur Nepal Private Limited was set up as an independent Group company in 1992. This new company, set amidst the verdant greens and towering mountains of the Himalayan country of Nepal, has established a unique bond of technology and preservation. 1. 2 caper of Statement The management of a companys working capital operatively influences its lucrativeness. In the short term, companies risk being short on liquidity if the working capital level deterio order.In the long term, too lots working capital lowers the return on investment and reduces the value of the company. In contrast, a lessening of the working capital can significantly improve cash flows and unaffixed up capital from a companys balance sheet. This capital can indeed be used to reduce debts, pay dividends to investors or reinvest in company growth. In the context of Nepal there is not practically toolation of working capital management technique that can brings the liquidity problem in short term and solvency problem in long term due to loss on business.This can be the one most important reason for the lower growth rate of manufacturing firm. I want to gain insight into this field and to identify potential areas for optimizatio n of working capital management for the profitability on the Nepalese manufacturing firm. Performance of firm on the topic of working capital management is very(prenominal) essential to pertain the optimum level of working capital then to enhance their profitability. moreover these elements can be affected by Nature of business, seasonality of operations, production policy, market condition, and political scenario.Therefore, I have done this investigation to know the dissolve of following question. a. What are the factors of working capital for Nepalese manufacturing firm? b. How can working capital affects the performance to enhance profitability of firms? c. How is the performance of firm to achieve the optimal working capital in order to maximise the profitability? 1. 3 Objective of the reckon The main objective of the explore is to measure the stupor of working capital management on the profitability for Nepalese manufacturing firm. The specific objectives of the case are summarizing as following. a.To probe the kin between working capital management and profitability for manufacturing firm. b. To determine the consanguinity between coat of firm and the profitability c. To Know the affinity between leverage and profitability. 1. 4 Limitation of the Study This study is intended to measure the impact of working capital management on profitability of Nepalese manufacturing firm but the study also influences from the following limitation. a. There isnt fiscal sponsor for the depth study. b. Due to the time constraints it is not possible to analyze the each variable in details. c.In depth analysis and the study of fiscal position is not feasible because of the policy and privacy of firm. d. The information is expect true that is taken from different source. CHAPTER-II LITERATURE REVIEW 2. 1 belles-lettres Review tally to Wilner (2000) most firms extensively use trade credit despite its apparent greater cost, and trade credit interest rates com monly exceed 18 percent and Deloof (2003) also found that check to National Bank statistics during 1997, Belgian companies had accounts payable of only 13% of the total asset and accounts receivable and Inventory of 17% and 10% of the total asset one by one.Singh and Pandey (2008) discussed the impact of working capital management in the profitability of Hindalco Industries Limited. relapse ensues showed that current ratio, liquid ratio, receivable turnover ratio and working capital to total assets had statically significant impact on profitability. Dong and Su (2010) examined the congressship between profitability, the cash onversion cycle and its component for listed firms in Vietnam carry market for period (2006-2008). They terminationed that there is strong damaging family affinity between cash conversion cycle and the profitability.Cote and Latham (1999, p. 261) argued that management of receivables, inventory and accounts payable have tremendous impact on cash flows, which in turn affect the profitability of firms. match to Long, Malitz and Ravid (1993) it is seen that liberal credit terms to the customers addition the sales level of the firm, though having a continuous troubleshooting with managing short term financing in the pay department. The decision lays with the firm which one to put more importance on. Scherr (1989, p. 6) claimed that companies can strengthen strong cash flow levels, improve profitability, budgeting and forecasting process, predictability and manageability of results, heighten risk if they implement the top hat practices in working capital. Amit, Sur and Rakshit (2005) studied the relationship between working capital and profitability in the context of Indian pharmaceutical industries and concluded that no definite relationship can be established between profitability and liquidity. Cote and Latham (1999, p. 61) argued that management of receivables, inventory and accounts payable have tremendous impact on cash flow s, which in turn affect the profitability of firms. Scherr (1989, p. 16) claimed that companies can strengthen strong cash flow levels, improve profitability, budgeting and forecasting process, predictability and manageability of results, heighten risk if they implement the best practices in working capital. Eljelly(2004) identified the relation between profitability and liquidity who was examined, as measured by current ratio and cash gap (cash conversion cycle) on a try of joint stock firms in Saudi Arabia.The study found that the cash conversion cycle was of more importance as a measure of liquidity than the current ratio that affects profitability. The size variable was found to have significant notion on profitability at the industry level. The results were s disconcert and had important implications for liquidity management in various Saudi firms. First, it was clear that there was a proscribe relationship between profitability and liquidity indicators such as current ratio and cash gap in the Saudi sample examined. Second, the study also revealed that there was great variation among industries with respect to the significant measure of liquidity.Sur Biswas and Ganguly (2001) revealed in their study of Indian aluminium producing industry, a very significant positive association between liquidity and profitability. All preceding(prenominal) studies had reached to the same results approximately, which had turn out there is the negative relationship between the working capital, debt ratio, current ratio and profitability, and the positive relationship between size of the firm with profitability. This study tries to depend on previous studies to provide new assure on how working capital can effect on the profitability. . 2 Research Frame Work Model ROA Leverage Performance operative Capital might positivity of the Firm Size of Firm Current Liabilities Current Assets Organization Planning Growth of business Ln of Sales Debt ratio liquid ratio CR All the components such as Working Capital, Profitability and Size of the firms, Liquidity, and Leverage performance are interrelated to each other. The working capital affects the profitability of the firm. Similarly size, leverage, and liquidity affect the working capital requirement and profitability of the firm.If there is low in current assets then it cant pay the short term obligation and if firms keep in high ratio then investment probability volition lose that decreases the value of profitability elements such as roe and ROA. Secondly, if there is high concentration on sales by property low liquid assets then profit can adjoin and it helps to subjoin the growth rate of company and fulfill the objective of shareholders wealth maximization and ease for the competition but low liquid assets can creates the risk of liquidity. Therefore, all components of above mentioned are interrelated positively and negatively.After analyzing the fiscal ratio BOD, manager can formulate the policy for sustainable business as well as investors leave freighter take best decision for the investment. This study has been guided according to the above variables and discussed the variables relation later on studied of two firms in detail in the below. Hence, this study pull up stakes benefit for the best decision of working capital requirement to manage the profitability, leverage in long term and to growth the firm in s hold over rate. CHAPTER-III info COLLECTION AND METHODOLOGY 3. 1 Research entropy CollectionThe data has taken from the secondary source regarding to the official site of Surya Nepal Pvt. Ltd and Dabur Nepal Pvt Ltd. substitute(prenominal) data is assumed as an enough and reliable. Sample of this study has been pore on the joint venture Nepalese manufacturing firms. These two firms have elect as a sample company due to big market in Nepal. To fulfill the objective of research, report is prepared by pickings a financial data of two sample companies fro m 2006 to 2011. 3. 2 description of variable I have used of dependent and independent variables to exculpate the study are as below.Dependent variables include profitability measure which will be computed by the following equation Return on Assets (ROA)= utmost Operating IncomeTotal Assets Secondly, independent variables have been divided in two parts. First part includes working capital management variables. Average receivable collections period (ARCP) are used to express the credit policy. It is calculated by employ following equation Average receivable collections period (ARCP)=Account Receivables *365/Sales Average conversion inventory period (ACIP), which is expressed the inventory policy.It will be identified by following formula Average conversion inventory period (ACIP)= Inventory *365/ live of Sales Average payment period (APP) is used to reflect the payment policy it is measured measured by following equation Average payment period (APP) =Accounts Payables *365/Cost of Sales Cash conversion cycle (CCC) is used to express the overall impact on working capital efficiency, and that is calculated by victimisation following equation. Cash Conversion Cycle (CCC)=ARCP+ACIP-APP At the second phase of independent variables has been included as below. Size of the company = subjective of log of sales (LNS). Current ratio (CR) = Current assets/Current Liabilities. Financial leverage ratio (FL) = Total Liabilities / Total Assets. 3. 3 trial-and-error Analysis This segmentation contains the descriptive analysis by taking the help of mean, standard deviation, upper limit and nominal value of all variables that is used in study. Similary, on the second phase of analysis here has been explained the relationship between the variables by development correlativity coefficient. Moreover, regression representative has been used to quantify the relation between variable and to measure the accuracy of this report.Multiple regression models have used to hav e it away the regression analysis. All types of analysis and graphical representation will be expressed by using the MS office package 2007. For this study I have used 4 regression models to quantify the relation and model is as below. 1. ROA= a+b1ARCP+b2CR+b3FL+b4LNS (model -1) 2. ROA= a+b1ACIP+b2CR+b3FL+b4LNS (model-2) 3. ROA= a+b1APP+b2CR+b3FL+b4LNS (model-3) 4. ROA= a+b1CCC+b2CR+b3FL+b4LNS (model-3) CHAPTER-IV DATA ANALYSIS AND PRESENTATION 5. 1. Empirical Analysis and Findings 4. 1. 1Descriptive Analysis Dabur Nepal Pvt. Ltd (Table 1) ROA ARCP ACIP APP CCC CR FL Lns Mean 0. 034 35. 67 75. 12 42. 35 68. 44 2. 00 0. 248 21. 73 old-hat Deviation 0. 028 19. 74 31. 74 35. 27 39. 24 0. 676 0. 055 0. 346 negligible 0. 001 4. 13 17. 37 8. 33 6. 30 1. 52 0. 207 21. 39 Maximum 0. 084 55. 23 111. 78 93. 46 120. 94 3. 19 0. 351 22. 38 Count 6 6 6 6 6 6 6 6 According to the above table, ROA on average is 34% and ROA existed between 0. 1 % to 0. 84%. The average receivables collec tion period has 5 years (approximately) as nominal to collect its receivables from the purchasers but it takes 55. 23 eld as maximum to collect its receivable.The average days of generating its sales on account slightly 35. 67 days. In addition, the average conversion inventory period (ACIP) takes virtually 17. 37 days to sell all its inventory as tokenish and takes 111. 78 days as maximum. The mean days to sell the inventories are 75. 12 days with standard deviation of 31. 74 days. About the APP, the firm has a minimum time 8. 33 days to pay its purchases on account and 93. 46 days as a maximum time. It takes an average 42. 35 days to pay its purchase with standard deviation of 35. 27. The cash conversion cycle (CCC) has 6. 30 days as a minimum time and maximum is 120. 94 days.The minimum current ratio (CR ) of the firm is 1. 52 and maximum is 3. 19 with the standard deviation of 0. 55%. The Natural Logarithm of size (LNS) shows minimum sales is 21. 39 and maximum is 22. 38 with the average of 21. 73. About the financial leverage is 20% as minimum and maximum is 35% with the standard deviation of 0. 55%. Surya Nepal PVT. LTD (Table 2) ROA ARCP ACIP APP CCC CR FL LNS Mean 0. 287 5. 11 191. 55 63. 45 133. 21 1. 72 0. 424 22. 82 Standard Deviation 0. 086 2. 90 21. 84 5. 88 19. 96 0. 678 0. 152 0. 339 Minimum 0. 178 2. 54 170. 51 57. 0 110. 72 1. 06 0. 255 22. 42 Maximum 0. 389 9. 86 232. 04 73. 16 167. 62 2. 44 0. 594 23. 31 Count 6 6 6 6 6 6 6 6 an average return on assets(ROA) is just 28% which is lower than Dabur Nepal Ltd. But the minimum and maximum value of ROA exists between 17 % to 38 % and less variant comparison with Dabur Nepal Ltd. The Average receivable collection period (ARCP) is 5. 11 days approximately and lower than Dabur. Thus, collection capacity of dabur is very strong. similarly, ACIP of Surya Nepal exist between 170. 51 days to 232. 04 days. About the average CCC of Surya Nepal is 133. 1 days which is higher than Dabur Ne pal. Therefore, we can say that, cash inflow days in the Dabur Company are quicker than Surya Nepal. Moreover, an average 42% portion is existed infra the total assets of the Surya firm that is higher than Dabur Company. It means, Surya Nepal takes more loans for the business. About the average size of Surya Nepal is 22. 82 that is higher than Dabur. Graph 1 source Table 1 and 2 Let summarize the above result a. ROA of Surya Nepal is higher that tends to the meaning of profitability volume is good rather than Dabur Nepal Pvt. Ltd. b. Credit collection capacity is stronger of Surya Nepal Pvt.Ltd. c. Surya Nepal Ltd. takes more time to convert the goods in raw material. d. Surya Nepal pays to supplier at delay comparison with Dabur. e. CCC of Surya is higher due to higher in ACIP and APP. 4. 1. 2. Correlation Coefficient Analysis Dabur Nepal Ltd. (Table 3) ROA ARCP ACIP APP CCC CR FL Lns ROA 1 ARCP -0. 903 1 ACIP -0. 666 0. 537 1 APP -0. 074 0. 141 0. 705 1 CCC -0. 927 0. 811 0. 446 -0. 258 1 CR 0. 835 -0. 627 -0. 888 -0. 450 -0. 6291 1 FL -0. 095 0. 285 -0. 007 -0. 152 0. 2743 0. 48 1 Lns 0. 144 -0. 172 0. 348 0. 609 -0. 352 -0. 203 -0. 572 1 Surya Nepal Pvt. Ltd (Table 4) ROA ARCP ACIP APP CCC CR FL LNS ROA 1 ARCP -0. 420 1 ACIP 0. 393 -0. 174 1 APP -0. 359 -0. 402 0. 441 1 CCC -0. 263 0. 073 0. 939 0. 130 1 CR -0. 892 0. 493 -0. 443 -0. 736 -0. 196 1 FL -0. 869 -0. 457 0. 541 0. 769 0. 299 -0. 992 1 LNS 0. 958 -0. 437 0. 569 0. 464 0. 423 -0. 893 0. 902 1 According to the Table 3 and 4, Return on Assets (ROA) has negative relationship with ARCP.It tends to the meaning of longer the time of collection days reduces the profitability of firm. Therefore, if a firm reduces the length between sales and collection, it will change magnitude the profitability through reinvest collections in profitable investments. Correlation results related negatively between the average conversion conversion inventories (AC IP) and ROA significantly in the character reference of Dabur. It means when the firm reduces the length time required converting raw material in to finished goods and then to sell those goods that lead to enhance profit.But in the fictitious character of Surya Nepal, there is positive relationship between ARCP and ROA. It means, it should take more stock for the high profit. The average Payment Period (APP) has negatively correlation with Profitability. It means, if the both firm bowdlerize the length time between purchases goods and payment of the value of goods, it will lead to gain profitability. There are negative relationship between cash conversion cycle (CCC) and ROA. If the firms shorten its conversion cycle as much as possible without hurting its operation, it will reflect positively on profitability.Correlation coefficient of the size (LNS) firm is positive relationship with profitability that indicates if the firm adjoins its size of sales it will lead to increase it s profitability. Current ratio refers to liquidity of the firm which relates positively correlated with ROA in case of Dabur but negatively correlated with ROA in case of Surya Nepal. Generally, if the firm invests its liquidity very well, it will generate high return and as per situation there might be required or not for holding of stocks in long term. About the Financial leverage that is negatively correlated with profitability.It means, if the firm depends on the financial leverage as much as need, ti carry itself financial obligation such as interest payment and principal payment and then it reflects negatively on its profitability. Dabur Nepal Pvt. Ltd. (Table 5) Year 2006 2007 2008 2009 2010 2011 ROA 0. 031 0. 030 0. 022 0. 001 0. 084 0. 038 CCC 85. 74 86. 30 63. 87 120. 93 6. 29 47. 46 Source Table 5. Graph 2 Conclusion According to the above finding, the increasing in the value of CCC that decreases the value of ROA. And it is proved that there is negative relationship betw een ROA and CCC.Surya Nepal Pvt. Ltd Graph 3. Conclusion In the case of Surya Nepal Pvt. Ltd, there is positive relationship between ROA anc CCC. This means to increase the profit of Surya firm then they have to increase the value of working capital component. 4. 1. 3Regression Analysis Dabur Nepal Pvt. Ltd Table 6 Independent Variables Model-1 Model-2 Model-3 Model-4 ARCP -0. 001 ACIP -0. 020 APP -0. 0003 CCC -0. 0004 CR 0. 020 0. 115 0. 045 0. 017 FL -0. 021 -0. 577 -0. 178 -0. 015 Lns 0. 014 0. 053 0. 008 0. 002 Adjusted R2 0. 780 0. 7 0. 517 0. 815 F-test 0. 010* 0. 01* 0. 0051* 0. 077** Surya Nepal Pvt. Ltd Table 7 Independent Variables Model-1 Model-2 Model-3 Model-4 ARCP -0. 003 ACIP 0. 907 APP -0. 008 CCC 0. 953 CR 0. 275 0. 360 0. 221 0. 275 FL -1. 188 -1. 599 -0. 055 -1. 188 Lns 0. 245 0. 224 0. 069 0. 245 Adjusted R2 0. 770 0. 67 0. 71 0. 79 F-test 0. 0876** 0. 0035* 0. 012* 0. 0144* In the above table, F-test has been done at 5%=* and 10% =**signi ficance of level. Table 6 and 7 presents the regression result of two firms of 4 models.According to the table 6 and 7, ARCP and ROA have negatively correlated. For the both Company if there is 1% increase in the days of collection period than less than 1% will decrease on the value of profitability. Similarly, for the both firm, liquidity ratio and size of firm is positively correlated. It means, increases in the sales that will increase the profit volume. Positive value of CR and LNS but negative value of financial leverage (FL) is accepted by all models. This means, if loan amount is increased by 1% then profit will decreased by 0. 21% in case of Dabur but more than 11% in case of Surya Nepal.All the, result revealed that, to increase the profit, firm should decrease the loan amount. According to the Model 4 from table 6, there is negative relationship between ROA and cash conversion cycle. This means, to increase the profit, Dabur should reduce the CCC. It is also supported by t he possibility of higher the working capital leads to the lower of profitability. On the other hand, model 4 from table 7 reveals that there is positive relationship between ROA and CCC. This result is beyond the theory and if Surya Nepal wants to increase its profit then it should increase the Working capital.It may the cause of poor situation of Nepalese economy, nature of business as well as less concentration on environment management that is leading to keep higher amount of stock. According to table 6, model 1 , 2 ,3 and 4 explained the dependent variable by independent in the portion of 78% , 77% , 51%, and 81 % respectively and remaining portion is due to other element. But in the table 7, dependent variable (ROA) is explained by independent in the form of 77%, 67%, 71%, and 79% and remaining part is covered by other elements. CHAPTER-V CONCLUSION AND RECOMMENDATION 5. Conclusion and RecommendationWorking capital management is the same of liquidity management and its related inversely with profitability but this theory always doesnt work. Here, I have found the different relationship between the component of working capital and profitability by taking financial data of Dabur Nepal Ltd and Surya Nepal Pvt. Ltd manufacturing from 2006-2011. This study appears that there is a negative significance relationship between average receivables collection period (ARCP), average conversion inventory period (ACIP, only case for Dabur), average payment period (APP) and the profitability measures.It is proved also a negative relationship between the cash conversion cycle (CCC) from the data of Dabur Company but it is not the result of universal fact because it is also proved that there can be a positive relationship between CCC and Profitability. The reason behind this can be the political risk, poor economy, lack of availability of raw materials and delivery of goods and services in time due to the labor amount of money problem, increasing in supplier power, unavai lability of credit facility, poor management of current assets and lack of efficient procedure and subsidy facility from government.After this analysis, the study recommends for the firms to manage their working capital efficiently to achieve the optimal profitability. Thus, the firms can manage their working capital through reduce the length time between sell the goods and receive cash of sales, it can do that by accelerating its collections. And it also reduce the length time between convert the raw materials into finished goods to sell these goods through. On the other hand the firms should shorten the length time between purchase goods to pay their purchases.All these will lead to shorten the cash conversion cycle and then lead to achieve the optimal profitability. Moreover, we cant say that there will be lower profit due to higher CCC because due to the environmental factors the component of working capital can be influenced and result can go beyond the cookery and objective. In the context of Nepal, where the practices of working capital management is poor and as a result firms are generating lower profit. Secondly, long procedure of raw material conversion and delay of payment also reduces the profit of firm.It can be the one cause of Positive relationship between CCC and profitability in case of Surya Nepal Pvt. Ltd. Therefore, reduction of working capital is not only best solution because environment analysis is also important factor. References Amit, K. Malik, Debashish Sur and Debdas Rakshit (2005). Working Capital and Profitability A Study on their Relationship with Reference to Selected Companies in Indian Pharmaceutical Industry, GITAM Journal of Management. 3 51-62. Deloof M (2003). Does Working Capital Management Affect Profitability of Belgian Firms? J. Bus. Financ. Account. , 30(314) 573-587. Dr. S. , Ray Evaluating the Impact of Working Capital Management Components on bodied Profitability Evidence from Indian Manufacturing Firms 2012 Elje lly, A. M. (2004). 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