The Strategic Imperative of Working Capital Management in Enhancing Corporate Financial Performance: An Empirical Study of Pearl Global Industries Ltd

This study examines the strategic role of working capital management (WCM) in enhancing the financial performance of Pearl Global Industries Ltd., a leading Indian apparel manufacturer and exporter. By analyzing five years of financial data (FY 2018–19 to 2022–23), the research evaluates the impact of key WCM components inventory turnover, accounts receivable, accounts payable, and the cash conversion cycle (CCC) on profitability indicators such as Return on Assets (ROA) and Return on Equity (ROE). The findings reveal that a shorter CCC and efficient receivables management significantly improve profitability, while excessive liquidity can hinder returns. The study highlights the need for balanced WCM strategies to optimize liquidity and operational efficiency in the capital-intensive textile sector. Practical recommendations include adopting digital tools for cash flow forecasting, tightening credit policies, and improving inventory planning. The research contributes to the literature by providing industry-specific insights into WCM’s role in financial resilience, particularly for export-driven firms in emerging markets. Keywords: Working Capital Management, Cash Conversion Cycle, Financial Performance, Textile Industry, Inventory Turnover, Accounts Receivable, Corporate Finance.