A Effective Study on Working Capital Management of Maruti Suzuki Nagpur for The Year of 2020 -2024

Abstract

The study titled "Effective Study on Working Capital Management of Maruti Suzuki Nagpur for the Years 2020, 2021, 2022, 2023, and 2024" aims to assess the working capital management practices of Maruti Suzuki's Nagpur plant over a five-year period. Working capital management is critical for ensuring the smooth functioning of day-to-day operations in a company. Efficient management of working capital improves liquidity, operational efficiency, and profitability. The study analyzes the company's working capital through key financial metrics such as the current ratio, quick ratio, inventory turnover, and receivables and payables days. By examining the financial data over the specified period, the research identifies trends in working capital practices and their impact on Maruti Suzuki's operational performance. Factors such as sales growth, production efficiency, supplier relationships, and changes in the automotive industry landscape are taken into account to understand the underlying dynamics of working capital management.

The findings suggest that Maruti Suzuki has maintained a relatively stable working capital position over the years, with improvements in inventory management and accounts receivable. The study also investigates the impact of economic factors such as the COVID-19 pandemic and supply chain disruptions on working capital. Additionally, recommendations for enhancing working capital efficiency are provided, including optimizing inventory levels, better receivables management, and strategic planning for cash flows. This study contributes to the understanding of the critical role of working capital management in the automotive industry and offers insights for Maruti Suzuki and other companies aiming to improve their financial health and operational effectiveness.