International Research Journal on Advanced Science Hub

Working capital is significant because of the effects it has on profitability and value. The conventional relationship between the cash conversion cycle and firm profitability is that reducing the cash conversion cycle improves firm profitability. Shortening the cash conversion time, on the other hand, can hurt the firm's operations and reduce profitability. This may occur when a firm takes steps to shorten the inventory conversion time; when a firm reduces the receivable settlement period, a firm could lose its good credit customers; and when a firm lengthens the payable deferral period, a firm may damage its own credit credibility. Identifying optimum levels of inventory, receivables, and payables where net keeping and opportunity costs are reduced and recalculating the cash turnover time based on these optimal stages, on the other hand, gives more full and precise insights into the performance of working capital management. According to the findings, the chosen firms have a poor average return on asset and return on equity, as well as a slightly negative cash conversion time. After adjusting for heteroskedasticity of data to minimise the effects of outliers, regression results revealed that cash conversion cycle has a significantly positive association with both return on assets and equity, indicating that it is not always necessary that the lower the cash conversion cycle, the greater the profitability measured through return on assets and equity. If the company will sell the goods and recover the receivables before paying the payables, the case would be somewhat different.

The Cost of Capital plays a significant role in capital budgeting decisions and is also used as a financial standard. The Weighted Average Cost of Capital (WACC) caters to the need to have a single rate, which helps to analyze and compare the cost of different sources of funds. It is important for all companies to understand the relationship between the cost of capital and its profitability to take proper care of the cost of capital to ensure a favorable financial situation in the company. The use of a statistical method such as correlation in understanding the relationship is systematic and scientific, which will provide better insight for future decision making. This paper undertakes to study the relationship between the cost of capital and profitability of Ports And Special Economic Zone Limited.

Finance is the science of money as it is the life blood of business. Financial performance analysis acts as a communicating language of the overall financial health.  It analyses the cause and effect of the profitability and liquidity of the business. Financial statements are prepared for the purpose of presenting a periodical review which has been widely used to represent the true statements of accounts. Ratio analysis is the widely used tool for financial analysis. Ratio analysis is the process of ascertaining the financial ratios that indicates the ongoing financial performance of a company. This study “Analysis Of Financial Performance Of Kokuyo Camlin Ltd., “is vital as only earning profit is not sufficient, a business should earn enough profit to fulfil its cost of capital and create various surplus to grow. This study helps to determine the liquidity and profitability of the firm. The study covers a period of five years i.e., from 2015-2016 to 2019-2020.

Working capital plays a vital role in a business enterprise, as it helps the companies to maintain enough cash flow to meet its short-term goals and obligations. Working capital or net working capital is the difference between a company’s current assets and its current liabilities. Working capital management is important for Nestle industries, as they deals with anonymous current assets and current liabilities. Data of Nestle India Limited was collected for five years from its secondary source and analysed. The study helps to determine the impact of working capital on the firm’s profitability. Pearson’s correlation analysis was calculated to find the relationship between the firm’s working capital and its profitability. It was found that the relationship was positively correlated between working capital and profitability, and suggested the company to maintain this positive relationship constantly without any further changes.

In the corporate world there has been a burning issue in the trade-off between liquidity and profitability position of the organisation. In the management there is a need to trade-off between liquidity and profitability as it helps to maximise the shareholder’s wealth. In the growth and survival of the business liquidity and profitability are very important issues.  The main aim of the study is to know the relationship between liquidity and profitability of NESTLE India limited. The study covered a period of five years from 2015-2019. To analyse the relationship between liquidity and profitability the study has used liquidity and profitability as financial tools and Karl Pearson, correlation of co-efficient as statistical tools. It is found that there is a negative relationship between liquidity and profitability of the firm.

Financial performance analysis is the process of identifying the financial strength and weaknesses of the firm by properly establishing the relationship between the items of the balance sheet and profit and loss account. This study particularly aims at analysis of liquidity and profitability of Hero Motocorp Limited. It is an Indian multinational motorcycle and scooter manufacturing company. This study includes the 5 year financial performance of the company and gives some suggestions to improve their level.