Imapct of Working Capital Management on Profitability of the Select Commercial Vehicle Manufacturers in India

India’s economic and social growth Segments are agriculture, industry and service. Transparent economic and social policies of the govt. made the country achieve rapid progress in economic and social spheres. Though all the segments are participating the nation’s economic development the automobile industry in particular took its chief role in sharing 7.5 percent in the total GDP rate. The raise in standard of living, growth in young population, consumer demand, high domestic savings and cheap credit availability keep the industry growing in leaps and bounds in last decade. It is forecasted that the automobile industry will become world leader by the year 2020.This is because of the major part taken by the commercial vehicle industry in automobile segment. This can be vouched by the fact that the segment contributes more than 50 percent of the total share of 7.5 percent of automobile industry. Hence it is important to investigate the managerial efficiency of funds in commercial vehicle manufacturing firms. The managerial efficiency of funds indicates the well being of working capital of the firm. The Working capital management is one of primary factor that made impact on the profitability of firm. Keeping this conjecture in mind, the researcher is interested to undertake this study to analyze the cash management, inventory cycle, liquidity and Return on Assets (ROA) to identify the impact on profitability of the firm. The Ratio analysis and Motaal’s comprehensive rank test are important statistical tools were used by the researcher to analyze ten years spanning from the year 2009-10 to 2018- 2019 of annual reports.