• Dr. Murchana Gogoi

Financing current assets and managing adequate working capital are the two most vital decisions a finance manager undertakes. Power Sector Companies require huge capital investment and the effective utilization of these fixed assets depends on sound working capital. The study is conducted using time-series data analysis from publicly available annual reports of APDCL for the past 13 years, i.e., 2009-10 to 2021-22. As a proxy to measure working capital, the liquidity ratios are determined by evaluating the degree of uniformity among the liquidity positions. Gross working capital is computed for the past years and compared to the respective Estimated Gross Working Capital that gives an outlay of the acute shortage or excess investment made by the company. Lastly, a correlation matrix is constructed to ascertain the relationship and association between working capital and profitability, followed by multiple regression analysis between its dependent and independent variables. The findings indicate (i) an improving scenario in the working capital ratios, with enough room for improvement (ii) the liquidity elements have no uniformity in their movements and (iii) the calculated Inventory Turnover Ratio impacts the company’s profitability.

Power Companies, Working Capital Management, Liquidity, Profitability, Assam

"The Effects of Working Capital Management on the Profitability of Assam Power Distribution Company Limited", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 7, page no.i616-i632, July-2023, Available :http://www.jetir.org/papers/JETIR2307888.pdf

"The Effects of Working Capital Management on the Profitability of Assam Power Distribution Company Limited", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 7, page no. ppi616-i632, July-2023, Available at : http://www.jetir.org/papers/JETIR2307888.pdf