Distinguished Competency and Efficacy of Working Capital Management Ensuing Firm Survival, Liquidity, Solvency and Profitability: A Study on Automotive Industry

Suranjan Bhattacheryay
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Suranjan Bhattacheryay: Indus Business Academy

American Business Review, 2023, vol. 26, issue 1, 19-64

Abstract: Limited research interest in studying working capital management process, is found in the literature. However, working capital management has been the most crucial determinant factor for any industry’s survival, liquidity, solvency and profitability. Therefore, to tackle efficiently liquidity and profitability trade –off, all industries are compelled to improvise their working capital management strategies. Continuation of working capital management process at optimal level, expedites firm's value creation and also facilitates to design framework in smoothening financial constraints so as to make effective usages of firm’s resources. The paper argues that automotive industry occupies a significant proportion of global economy. Therefore, an effort has been made to undertake an in-depth study on the industry. The study besides identifying the industry leader, explores diverse techniques to advance comparative study on the industry efficiency level in managing working capital process. The research outcome facilitates investors to choose the most commendable automotive companies for investments.

Keywords: Crucial Determinant Factor; Liquidity and Profitability Trade-off; Working Capital Management Strategies; Smoothening Financial Constraints; Diverse Techniques; Commendable Automotive Companies (search for similar items in EconPapers)
JEL-codes: D24 G33 (search for similar items in EconPapers)
Date: 2023
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