REVIEWING THE IMPACT OF WORKING CAPITAL MANAGEMENT ON THE FINANCIAL WELL-BEING OF THE AUTOMOBILE INDUSTRY IN INDIA
Throughout the course of this extensive review article, we dive into the complex link that exists between the management of working capital and the achievement of financial success in institutional settings. We want to give a comprehensive knowledge of how efficient working capital strategies effect many aspects of company performance by synthesising a varied array of literature gathered from both established and emerging countries. This will allow us to identify the ways in which these practices have an impact. To be more specific, the emphasis of our investigation is on the ways in which skilled management of working capital may influence a company's profitability, liquidity, and overall operational efficiency. We emphasise the fundamental necessity of managing current assets and liabilities in a skilled manner in order to promote optimum cash flow and operational efficiency, both of which are important for the continued success of a firm. Additionally, our evaluation highlights significant research gaps that apply to the complex and non-linear nature of the link between working capital and the profitability of corporations. For the purpose of providing a thorough understanding of this link, we stress the need of future research adopting a more nuanced approach, taking into consideration the variances in context and the cultural influences being considered. In conclusion, the article that we have written emphasises the vital relevance of strategic management of working capital as a cornerstone for guaranteeing long-term financial stability and success for companies in the current economic landscape, which is characterised by a dynamic environment.
Working Capital Management, Profitability, Liquidity, Current Assets, Current Liabilities.