Efficiency in Working Capital Management of Maharashtra Central Public Sector Enterprises in India: An Empirical Analysis

Abstract

Management of Working Capital (WC) has always been a facilitating subject from the academic point of view and it must be admitted that in real world situation the genesis of success of a business firm lies in the efficiency of managing its funds employed in business operations including WC. So, the importance of WC management (WCM) even in the Central Public Sector Enterprises (CPSEs) cannot be ignored. In fact, it is recognized as a crucial area of financial management of all business firms belonging to both public and private sectors. A firm should neither have too high or too low investment in WC because both of them adversely affect its profitability. Efficient management of WC facilitates an entity in running its business wheel uninterruptedly as well as reaching profitability at optimal level by utilizing suitable amount of investment in WC. In the present paper a modest effort was made to analyse the WCM of all the ten Maharatana CPSEs during the period 2004-05 to 2018-19.