IMPACT OF DELAYED CUSTOMER PAYMENTS ON BUSINESS LIQUIDITY: A Case Study of An Ancillary Manufacturer Around Coimbatore

This study investigates the impact of delayed customer payments on the business liquidity of a leading automobile ancillary manufacturer based in Coimbatore, one of India’s prominent players in dashboard instruments. Using secondary data drawn from the company’s annual reports for the period 2021 to 2025, the study employs a descriptive research design with financial tools including ratio analysis, mean, standard deviation, and coefficient of variance. Key profitability ratios (gross profit, net profit, operating profit), turnover ratios (debtors’ turnover, working capital turnover, fixed assets turnover), liquidity ratios (current ratio, quick ratio), and solvency ratios (proprietary ratio, fixed assets to net worth) were computed and analysed. Findings reveal a fluctuating but generally improving trend in profitability, with the gross profit ratio rising from 24.80% in 2022 to 36.55% in 2025, and the debtor’s turnover ratio indicating variable receivables collection efficiency. The study concludes that effective receivables management and well-defined credit policies are critical for sustaining liquidity and operational stability in the competitive automobile components sector.