Impact of Working Capital Management on Liquidity, Profitability and Risk: A Case Study of Hindustan Petroleum Corporation Limited (HPCL)

Author:Ajay Maheshwari

Abstract:
This paper makes an attempt to assess the impact of working capital management on liquidity, profitability and risk of HPCL, a leading public sector enterprise in India over a 10 year period (i.e. from 2006-07 to 2015-16). It also makes an attempt to gauge and test the correlation between liquidity and profitability as well as between profitability and risk. In this study, an attempt has also been made to establish the linear relationship between liquidity and profitability with the help of a multiple regression model. The study is based on secondary data collected from published annual reports of HPCL. The available data have been analyzed by using some important managerial and statistical tools. Various statistical tests viz. Average, SD, CV, CAGR, Spearman Correlation, Student t-test, and Durbin and Watson test have been applied to test the significance of the results obtained.

Keywords:Keywords: Liquidity, Profitability, Risk, Working Capital Management and HPCL.

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:1)