The Effect of Working Capital Management on the Profitability of the Top Ten Retail Firms Listed in the Bombay Stock Exchange (BSE)

Abstract

This study tries to explore the impact of working capital management on the top 10 retail companies listed on the Bombay Stock Exchange (BSE). The five-year period of data including both dependent and independent variables. The firm size, sales growth, debt-to-current ratio, and current ratio are the control variables, while working capital management approximations are used to establish the ROI, average collection period, average payment period, inventory conversion time, and cash conversion cycle. Data is analysed using correlation analysis, descriptive statistics, and ordinary square least regression analysis to determine the impact of these factors on profitability. According to correlation studies, ROA and ROE have positive correlations with CR but negative correlations with APP, ICP, DR, and CR. In a similar vein, ROA and ROE have negative correlations with APP, CCC, DR, and CR. The study offers some very useful advice to people in charge of managing the retail sector's management.