Working capital management is a critical component of financial management that directly influences a firm’s liquidity, operational efficiency, and profitability. In capital-intensive industries such as steel, effective management of short-term assets and liabilities becomes essential due to the substantial investment involved in inventory, receivables, and production processes. This study focuses on analyzing the impact of working capital management on the profitability of Tata Steel Ltd., one of the leading steel manufacturers operating in a highly competitive and dynamic business environment.

The study is based on secondary data collected from the company’s annual reports and financial databases over a selected period. It adopts an analytical research design and utilizes various financial and statistical tools, including ratio analysis, descriptive statistics, paired sample t-test, one sample t-test, Pearson’s correlation, and linear regression analysis. The analysis is carried out using JASP to examine the relationship between working capital components—such as inventory, trade receivables, and trade payables—and profitability indicators like net profit margin, return on assets (ROA), and return on capital employed (ROCE).