• Shweta Tiwari

WCM is critical in defining financial performance and sustainability of the Small Scale Industries (SSIs). Nowadays, in large cities like Delhi, small businesses have to live within the conditions of liquidity constraint, slower payment bonds, and reduced access to formal funds, which is why effective liquidity management of assets and liabilities is paramount. This paper is an empirical research investigating the correlation between WC efficiency and profitability of 210 SSIs in Delhi. The results indicate that there is a strong unfavorable correlation between WC ‘Cash Conversion Cycle (CCC)’ and profitability, which means that cash cycles with a short length have a favorable impact on financial performance. Inventory Turnover Ratio (ITR) and Receivables Turnover Ratio (RTR) are favorable and statistically significant impacts on profitability. The regression model accounts for 58% of the variation in Return on Assets (ROA), implying a significant amount of explanatory strength. Surplus liquidity, indicated by a high Current Ratio (CR), exhibits a unfavorable impact on returns but at a mild degree. The research finds that the best and not excessive liquidity management is a key productive way of enhancing profitability. The best inventory control and credit management techniques play a critical role in maintaining financial performance within SSIs.

WC efficiency, , Profitability, SSIs, Liquidity Management

"WC Efficiency and Profitability in SSIs: An Empirical Study of Delhi", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 9, page no.b789-b791, September-2026, Available :http://www.jetir.org/papers/JETIR2609188.pdf

"WC Efficiency and Profitability in SSIs: An Empirical Study of Delhi", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 9, page no. ppb789-b791, September-2026, Available at : http://www.jetir.org/papers/JETIR2609188.pdf