Abstract

The present paper is an attempt to study that How a working capital management efficiency impacts on profitability of Maruti Suzuki in India?Further purpose of this paper is to examine the relationship between inventory conversion period and Maruti suzuki’s profitability. The dependent variables are Inventory conversion period, Gross profit margin, Return on assets, Net profit margin, and Independent variable is Inventory Turnover Ratio. These variables are used as measure of profitability and the relation between inventory management and profitability. In this research researcher studied on Maruti suszuki over a period of five years from 2014-2018. This study used correlation to analyze the impact of inventory conversion period over return on assets, gross profit margin, net profit margin and inventory turnover ratio. The result came in this research is that there is a significant relationship between inventory conversion period and profitability.

Key words: working, capital, management, efficiency