Abstract:
The Working Capital Managements very vital for a business survival. This is
premised on the fact having too much working capital signifies inefficiency, whereas
too little cash at hand signifies that the survival of business is shaky. The purpose of
this research is to study the Working Capital Management and profit in the Rice Mills
In Addalaichenai division, so as to establish factors influencing Working Capital
Management. This study examines that how liquidity, Cash Conversion Cycle and
Firm Size affects the profitability, and optimum Working Capital Management of
Rice Mills. Literature bordering on different areas of Working Capital Management was
reviewed. Thus, this research employed qualitative and quantitative analysis.
Structured questions were drafted based on the issues raised from the review of
various literatures. In addition, materials from journal articles, textbooks, and working
papers are put into consideration. Analysis on the Rice Mill's financial statement was
carried out in order to verify researcher findings. In this research, the theory section
looks at various concepts that come up when analyzing the consequences of Working
Capital Management and the factors that influence a Rice Mill's profitability.
Researcher has therefore chosen the common concept.
In the analysis of the research findings, researcher employed quantitative approach to
the data analysis where the impacts of the Working Capital Management on the Rice
Mill in profit. The financial statements as interpreted reinforce the validity of this
result. The Current Ratio and Quick Ratio are highly determinants on profit, the Cash
Conversion Cycle and Firm size also impact on profit o f Rice Mill's. According to
the analysis liquidity, Cash Conversion Cycle, Firm Size have highly impact on Rice
Mill's profitability, and liquidity has negative impact on profit, which is similar to the
previous literature, however Cash Conversion Cycle and firm size has positive impact
on profit.
