A Study on Working Capital Management on AAVIN'S Profitability

This study examines the impact of working capital management on the profitability of AAVIN, a prominent dairy cooperative in Tamil Nadu. Effective management of working capital is crucial for maintaining liquidity and operational efficiency, which can significantly influence profitability. The study analyzes key components of working capital such as inventory management, receivables, payables, and cash conversion cycle to determine their relationship with AAVIN’S profitability indicators, including net profit margin and return on assets (ROA). By using financial data from AAVIN’S over a defined period, the research highlights how optimizing working capital practices can enhance profitability without compromising operational sustainability. The findings suggest that efficient working capital management contributes positively to the firm’s profitability by reducing costs and improving cash flow management. Recommendations for improving AAVIN’S working capital strategies are provided to maximize its financial performance in the competitive dairy industry.