A Study on Working Capital Management in Manufacturing Sector

Working Capital Management is an essential component of financial management that focuses on maintaining a balance between current assets and current liabilities to ensure liquidity, profitability, and operational efficiency. Efficient management of working capital enables organizations to meet short-term obligations while maintaining smooth business operations. In the manufacturing sector, working capital management plays a significant role due to high investment in inventory, receivables, and production processes. The present study examines the importance of working capital management using conceptual and analytical approaches. The study evaluates liquidity position and financial efficiency using ratio analysis. The findings indicate that effective working capital management contributes to financial stability, improves operational performance, and supports sustainable growth.