Working Capital Management Strategy: A Comparative Study of selected companies of Chemical industry in India
Keywords:
Chemical Industry, Working Capital Management, Market Capitalization ANOVAAbstract
An attempt had made in this research to explain working capital management in context of chemical industry in India. Five chemical companies considering market capitalization had been selected and research period covers five years from 2016 to 2020. In order to justify the topic accounting tool – Ratio analysis is applied in which Inventory Turnover Ratio (X), Working Capital Ratio (X), Acid Test Ratio (X) and Collection Ratio and Cash Position Ratio (%) are used while statistical test – ANOVA test for single factor is applied to comparatively analyze significant difference in selected working capital ratios between selected Chemical companies which depicted that there is significance difference in Working Capital Ratio (X), Acid Test Ratio (X) and Collection Ratio and Cash Position Ratio (%) accept in Inventory Turnover Ratio (X) between selected Chemical companies. It had suggested that companies must focus on its working capital in order to avoid short term finical crisis and have smooth functioning of its business operation.
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References
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