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International Journal of Science, Strategic Management and Technology

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ISSN: 3108-1762 (Online)
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WORKING CAPITAL MANAGEMENT AS A TOOL FOR ENHANCING CORPORATE FINANCIAL HEALTH: A DESCRIPTIVE STUDY

AUTHORS:
R. Veeranjaneyulu
Mentor
Dr. V.J.DEVA RAAJ,Ch. Shravani
Affiliation
Department of MBA V.K.R., & V.N.B. Engineering College, Gudivada, Andhra Pradesh, India-521301

 
CC BY 4.0 License:
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract

Working capital management is a vital aspect of corporate financial management that ensures the efficient utilization of short-term assets and liabilities to maintain liquidity and operational continuity. The present study examines working capital management as a tool for enhancing corporate financial health through a descriptive research approach. The study is based entirely on secondary data collected from annual reports, financial statements, journals, books, and other published sources. It focuses on analyzing the major components of working capital, including cash, inventory, accounts receivable, and accounts payable, to assess their contribution to financial stability and organizational efficiency. The study employs ratio analysis and other financial evaluation techniques to understand the effectiveness of working capital management practices. The findings reveal that efficient management of working capital contributes significantly to maintaining liquidity, improving operational performance, reducing financial risk, and supporting profitability. Proper control of current assets and current liabilities enables organizations to meet short-term obligations while ensuring smooth business operations. The study further highlights the importance of balancing liquidity and profitability for sustainable financial growth. Overall, the research concludes that effective working capital management serves as a strategic financial tool that enhances corporate financial health and supports long-term organizational success in a competitive business environment.

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Veeranjaneyulu, R. (2026). Working Capital Management as a Tool for Enhancing Corporate Financial Health: A Descriptive Study. International Journal of Science, Strategic Management and Technology, 02(04). https://doi.org/10.55041/ijsmt.v2i5.590

Veeranjaneyulu, R.. "Working Capital Management as a Tool for Enhancing Corporate Financial Health: A Descriptive Study." International Journal of Science, Strategic Management and Technology, vol. 02, no. 04, 2026, pp. . doi:https://doi.org/10.55041/ijsmt.v2i5.590.

Veeranjaneyulu, R.. "Working Capital Management as a Tool for Enhancing Corporate Financial Health: A Descriptive Study." International Journal of Science, Strategic Management and Technology 02, no. 04 (2026). https://doi.org/https://doi.org/10.55041/ijsmt.v2i5.590.

References
1.Ahmed, S., & Rahman, M. (2024). Working capital management and corporate financial performance: Evidence from manufacturing firms. International Journal of Financial Studies, 12(2), 45–58. https://doi.org/10.3390/ijfs12020045

2.Banerjee, R., & Sharma, P. (2023). An assessment of working capital management practices in industrial enterprises. Journal of Corporate Accounting and Finance, 34(4), 112–125. https://doi.org/10.1002/jcaf.22678

3.Brigham, E. F., & Ehrhardt, M. C. (2022). Financial management: Theory and practice (16th ed.). Cengage Learning.

4.Chaudhary, V., & Verma, N. (2024). Working capital management and financial health: A descriptive analysis of selected firms. Global Business Review, 25(1), 88–102. https://doi.org/10.1177/0972150924123456

5.Das, A., & Mukherjee, S. (2023). Working capital efficiency and profitability in manufacturing companies. Asian Journal of Accounting Research, 8(3), 201–214. https://doi.org/10.1108/AJAR-05-2023-0065

6.Gitman, L. J., Juchau, R., & Flanagan, J. (2022). Principles of managerial finance (9th Asia-Pacific ed.). Pearson Education.

7.Gupta, R., & Singh, A. (2024). Working capital management and corporate financial sustainability: An empirical study. Journal of Risk and Financial Management, 17(3), 135–149. https://doi.org/10.3390/jrfm17030135

8.Khan, M. Y., & Ali, S. (2023). Evaluating the effectiveness of working capital management in business organizations. International Journal of Finance and Economics, 28(4), 4152–4165. https://doi.org/10.1002/ijfe.2789

9.Madura, J. (2023). Financial management: Theory and practice (14th ed.). Cengage Learning.

10.Pandey, I. M. (2022). Financial management (12th ed.). Vikas Publishing House.
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✓ All ethical standards met
This article has undergone plagiarism screening and double-blind peer review. Editorial policies have been followed. Authors retain copyright under CC BY-NC 4.0 license. The research complies with ethical standards and institutional guidelines.
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