A Study on Working Capital Management and Its Impact on Profitability of Sri Lakshmi Auto Enterprises India Pvt. Ltd.

Abstract: Working capital management plays a crucial role in ensuring the financial efficiency and profitability of business organizations by maintaining an optimal balance between current assets and current liabilities. The present study focuses on analyzing working capital management practices and their impact on profitability with special reference to Sri Lakshmi Auto Enterprises India Pvt. Ltd. The primary objective of the study is to examine how effectively the organization manages its working capital components such as cash, receivables, inventory, and payables, and how these practices influence its profitability. The study is based on primary data collected from 385 respondents using a structured questionnaire and employs descriptive statistical tools such as percentage analysis and mean score analysis. The findings reveal that the organization maintains a satisfactory level of working capital management practices, particularly in cash management, payables management, and credit policy implementation. However, certain areas such as inventory management and receivables collection require further improvement. The profitability impact analysis indicates a strong positive relationship between efficient working capital management and profitability. Respondents strongly agree that timely receivables collection, reduced inventory holding costs, and effective cash and payables management significantly enhance profit margins. The overall results confirm that better working capital management leads to improved liquidity, operational efficiency, and profitability. The study concludes that Sri Lakshmi Auto Enterprises India Pvt. Ltd. can further strengthen its financial performance by optimizing its working capital components. Effective management of working capital not only improves profitability but also ensures long-term financial stability and sustainability in a competitive business environment. Keywords: Working Capital Management, Profitability, Cash Management, Receivables Management, Inventory Management, Payables Management, Liquidity, Financial Performance, Cash Conversion Cycle, Auto Enterprises. Title: A Study on Working Capital Management and Its Impact on Profitability of Sri Lakshmi Auto Enterprises India Pvt. Ltd. Author: Dr.M.Soundarya, Saimuhilan M, Mageshwaran A, Mukesh A International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 14, Issue 1, April 2026 - September 2026 Page No: 203-207 Research Publish Journals Website: www.researchpublish.com Published Date: 21-April-2026 DOI: https://doi.org/10.5281/zenodo.19681476 Paper Download Link (Source) https://www.researchpublish.com/papers/a-study-on-working-capital-management-and-its-impact-on-profitability-of-sri-lakshmi-auto-enterprises-india-pvt-ltd