A Comparative Study of Working Capital Management in Steel Authority of India Limited and Tata Steel Limited

Author: Yogesh Kumar

Abstract:
Working capital has an impact on profitability because effective working capital management is about striking a trade off between profitability and liquidity. Working capital management refers to the administration of all components of working capital-cash, marketable securities, debtors and stock and creditors. Working capital is one of the powerful measurements of the financial position. The goal of working capital management is to manage the firm’s current assets and current liabilities in such a way that a satisfactory level of working capital is maintained. In several units there is adequate working capital but the mismanagement of working capital increases the costs and reduces the rate of return. The efficient management of working capital minimizes the cost and can do much more for the success of the business. With this background this paper attempts to make a comparative study of working capital management with the help of financial and statistical tools in SAIL and Tata Steel Ltd, which are capital intensive firms of steel sector with significant investments in working capital i.e. inventory, receivables and cash.

Keywords:Working Capital Management SAIL, Tata Steel Ltd., Steel Industry.

DOI:

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