International Journal of Financial Management

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Impact of Working Capital Management on Corporate Performance: An Empirical Analysis of Selected Public Sector Oil & Gas Companies in India


Affiliations
1 Department of Commerce, The University of Burdwan, Burdwan, West Bengal, India
2 Syamsundar College, Department of Commerce, The University of Burdwan, Burdwan, West Bengal, India
     

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This paper makes an attempt to examine the impact of working capital management on corporate performance of selected public sector oil & gas companies in India during the period of 10 years (i.e. from 2000-01 to 2009-10). It also makes an endeavour to measure the degrees of associations between the measure of profitability i.e., ROCE and the selected ratios relating to working capital management of the selected companies under study during the study period. A comparative analysis can be done to adjudge the better performing company and to identify the causes of better performance. An attempt has also been undertaken for measuring the sensitivity of return on capital employed (ROCE) to changes in the level of working capital, working capital leverage (WCL) has been computed and applied. Ultimately the article concludes some valid recommendations these deserve the attention of the management of the concerned companies under study, oil and gas sector in India and especially Government.

Keywords

Liquidity, Profitability, PI, UI, EI &amp, WCL
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  • Impact of Working Capital Management on Corporate Performance: An Empirical Analysis of Selected Public Sector Oil & Gas Companies in India

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Authors

Chitta Ranjan Sarkar
Department of Commerce, The University of Burdwan, Burdwan, West Bengal, India
Aniruddha Sarkar
Syamsundar College, Department of Commerce, The University of Burdwan, Burdwan, West Bengal, India

Abstract


This paper makes an attempt to examine the impact of working capital management on corporate performance of selected public sector oil & gas companies in India during the period of 10 years (i.e. from 2000-01 to 2009-10). It also makes an endeavour to measure the degrees of associations between the measure of profitability i.e., ROCE and the selected ratios relating to working capital management of the selected companies under study during the study period. A comparative analysis can be done to adjudge the better performing company and to identify the causes of better performance. An attempt has also been undertaken for measuring the sensitivity of return on capital employed (ROCE) to changes in the level of working capital, working capital leverage (WCL) has been computed and applied. Ultimately the article concludes some valid recommendations these deserve the attention of the management of the concerned companies under study, oil and gas sector in India and especially Government.

Keywords


Liquidity, Profitability, PI, UI, EI &amp, WCL

References