European Journal of Economic and Business (ISSN - 2456-3900)

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Examining Profitability Through Working Capital Management in ITC Limited

Anas Khan

Abstract


The present research has been undertaken to examine the impact of working capital management on the profitability of an Indian conglomerate ITC Limited. The period of the study is ten financial years from 2007-08 to 2015-17. Return on assets (ROA), return on equity (ROE), and return on capital employed (ROCE) have been used as the proxy variables of profitability. Current ratio, quick ratio, debtors turnover ratio, and inventory turnover ratio have been used as independent proxy variables for the working capital management. Multiple linear regression has been used as the statistical tool to investigate the impact of various independent variables on ROA, ROE, and ROCE. The findings show that there is a significant impact of working capital management on the profitability of ITC.

Keywords


working capital, management, ITC, profitability.

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References


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