Published Online:January 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP140125
DOI:10.71329/IUPJARAP/2025.24.1.278-290
Author Name:Debabrata Jana
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:278-290
The power industry in India is one of the most critical components of infrastructure, which has an effect on the economic growth and wellbeing of the nation. The paper assesses the efficiency of working capital management strategies that power companies employ, with a view to establishing the relationship between working capital management and business profitability. The study sample comprises 10 selected power companies, and the period of study is 10 years, i.e., from 2012 to 2021. Statistical tools like correlation and regression are used for analyzing the data and variables. The findings indicate that return on net worth (RONW), return on capital employed (ROCE) and return on assets (ROA) are positively influenced by profitability, liquidity, leverage, firm size and firm growth of the selected power companies.
India is the third largest producer of electricity in the world. Energy is a fundamental need for almost all our day-to-day activities. Power is an important component of infrastructure development, affecting the economic growth and welfare of a country.