A STUDY ON WORKING CAPITAL MANAGEMENT IN GODREJ COMPANY

“A Study on Working Capital Management in Godrej company” plays a vital role in thefinancial performance and operational efficiency of every organization. The present studyfocuses on the analysis of working capital management practices in godrej.com� with theobjective of understanding how the company manages its short-term assets and liabilitiesto maintain liquidity, profitability, and smooth business operations.The study examines important components of working capital such as cash management,inventory management, accounts receivable, and accounts payable. It also evaluates theefficiency of the company through financial ratios including current ratio, quick ratio,inventory turnover ratio, debtor turnover ratio, and working capital turnover ratio. Theresearch is based on secondary data collected from annual reports, financial statements,company websites, journals, and published articles related to working capitalmanagement.The analysis reveals that effective working capital management helps Godrej maintainadequate liquidity, improve operational performance, and enhance profitability. Propercontrol over inventory and receivables has contributed to better utilization of resourcesand reduction in unnecessary costs. The study also highlights the challenges faced inbalancing liquidity and profitability in a competitive FMCG and consumer goods industry.The study concludes that efficient working capital management is essential for the longterm growth and financial stability of the company. It suggests that continuous monitoringof current assets and liabilities, adoption of advanced financial planning techniques, andimprovement in cash flow management can further strengthen the company’s financialposition.

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Publication Details

Published
2026-05-22
DOI
https://doi.org/10.82471/fc5hk-agz10
Primary Topic
Working Capital and Financial Performance
Type
article
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article

A STUDY ON WORKING CAPITAL MANAGEMENT IN GODREJ COMPANY

HARSH KATIYAR
Working Capital and Financial Performance
article

A STUDY ON WORKING CAPITAL MANAGEMENT IN GODREJ COMPANY

HARSH KATIYAR
article en

Abstract

“A Study on Working Capital Management in Godrej company” plays a vital role in thefinancial performance and operational efficiency of every organization. The present studyfocuses on the analysis of working capital management practices in godrej.com� with theobjective of understanding how the company manages its short-term assets and liabilitiesto maintain liquidity, profitability, and smooth business operations.The study examines important components of working capital such as cash management,inventory management, accounts receivable, and accounts payable. It also evaluates theefficiency of the company through financial ratios including current ratio, quick ratio,inventory turnover ratio, debtor turnover ratio, and working capital turnover ratio. Theresearch is based on secondary data collected from annual reports, financial statements,company websites, journals, and published articles related to working capitalmanagement.The analysis reveals that effective working capital management helps Godrej maintainadequate liquidity, improve operational performance, and enhance profitability. Propercontrol over inventory and receivables has contributed to better utilization of resourcesand reduction in unnecessary costs. The study also highlights the challenges faced inbalancing liquidity and profitability in a competitive FMCG and consumer goods industry.The study concludes that efficient working capital management is essential for the longterm growth and financial stability of the company. It suggests that continuous monitoringof current assets and liabilities, adoption of advanced financial planning techniques, andimprovement in cash flow management can further strengthen the company’s financialposition.

Decent work and economic growth
Openalex Percentile: Top 2%
Working Capital and Financial Performance
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