Authors:
Muhammad Usaini, Abubakar Isah Jibrin
Addresses:
Department of Accounting and Finance, Federal University Gusau, Gusau, Zamfara, Nigeria.
Theory and research have examined how working capital management affects corporate performance in many circumstances for years. Financial managers required a way to understand working capital in today's fast-paced offices. Business profitability and working capital management have been examined in numerous countries. This report also examines the impact of working capital management on the profitability of Indian corporations from 2006 to 2014. The 20 cement companies listed on India's national security exchange use balanced panel data. Pearson correlations were used to examine the relationship between working capital management and company profitability. To determine how working capital management affects the earnings of such firms, regression analysis was performed using both a fixed-effects model and the traditional least-squares model. The fixed-effects model demonstrates that the average duration of collection and cash exchange has a significant impact on profitability. Stock conversion and average payments improve business profits. The normal lesser square technique boosted profitability except for the cash transaction time. This study suggests management can increase shareholder value by reducing daily account claims. A fair inventory increase can boost shareholder value for the administration. Companies can delay paying creditors unless their relationship is strained. Paying attention to cash transfer time gives companies a long-term benefit, and these measures should boost profits.
Keywords: Working Capital; Empirical Research; Cement Companies; Corporate Performance; Fixed-Effect Model; Stock Conversion; Average Payments; Business Profitability; Regression Analysis.
Received on: 07/09/2024, Revised on: 20/11/2024, Accepted on: 12/01/2025, Published on: 05/03/2025
DOI: 10.69888/FTSTPL.2025.000397
FMDB Transactions on Sustainable Technoprise Letters, 2025 Vol. 3 No. 1, Pages: 39-49