International Journal of Statistics and Applied Mathematics
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2024, Vol. 9, Special Issue 4

The effect of working capital on the liquidity: A case of seed companies in India


Author(s): Niharika Prasad

Abstract: The difference between current assets and current liabilities is recognized as working capital. Every business must have enough amounts of liquidity to carry out its daily operations without any obstacles. The key objective of working capital management is to maintain the stability between current assets and current liabilities. This study examined the relationship between working capital management and companies liquidity. The fixed and the current assets play a vital role in the success of any company. This paper attempts to evaluate the effectiveness of working capital and liquidity management of the Rallis, Monsanto, and Kaveri seed companies during 2013-17. Control variables like Current ratio, quick ratio, Debtors turnover ratio, inventory turnover ratio are used for measuring working capital management. Current assets to total assets ratio (CATAR) and return on investment (ROI) were taken as profitability and liquidity parameters. For this purpose, secondary data has been used through annual reports of the selected seed companies. Spearman's Rank Correlation Analysis, and t-test were used for analyzing the data. The study shows that there is a significant relationship between CATAR and the ROI of selected seed companies.

Pages: 04-08 | Views: 88 | Downloads: 4

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How to cite this article:
Niharika Prasad. The effect of working capital on the liquidity: A case of seed companies in India. Int J Stat Appl Math 2024;9(4S):04-08.

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