Main Article Content
Abstract
Working capital supports the day to day operation of the firm. The working capital is required for the operational activities of the companies. Empirical studies show that ineffective management of working capital becomes the major cause of factories sickness. The working capital management is very much essential to increase the efficiency of the firm and to achieve the desired goal. The research has also presented descriptive analysis on working capital with the help of some important ratios including to current ratio, quick ratio, inventory turnover ratio, Debtors turnover ratio, Creditors turnover ratio and working capital turnover ratio. The private sugar factories working in different parts of Tamil Nadu are selected as sample units for the present study Viz., Rajshree Sugars and Chemical Ltd, Sakthi Sugars Ltd, Kothari Sugars and Chemical ltd, Thiru Arooran Sugars Ltd, Bannari Amman Sugar Mills Ltd for the period of ten years from 2008-2009 to 2017-2018. The secondary data were collected from annual reports of companies. The study results revealed that sugar factories included in the present study are need to improve their liquidity, profitability and showed concentrate on working capital management. The results of correlation provided that there is a positive relationship between Return on Asset and Firm Size ( turnover) in Thiru Arooran Sugars Ltd., and between ROA and debt ratio in case of Bannari Amman Sugar Mills Ltd. The multiple regression analysis revealed that the maximum of 94.5 percent in Sakthi Sugars Ltd, the working capital management influences the net profit.