WORKING CAPITAL DYNAMICS AND THEIR FINANCIAL IMPACT ON TGSRTC
Abstract
The present study aims to determine how Working/operating capital management (WCM) ratios impact the financial performance of the Telangana State Road Transport Corporation (TGSRTC) over the years 2018 to 2023. Specifically, are the effects observed and what is the relationship between managing cash, receivables, inventories and TGSRTC’s operational margin. The portfolio results showed that poor cash control policies improve operational efficiency and profitability, while ineffective management policy on inventories reduce profitability due to high carrying costs. In addition, the efficiency of receivables collection further facilitates cash flow and improved operational efficiency hence financial performance. Finally, the analysis states that the optimization of process WCM is the only possible solution for the strengthening of the financial status of TGSRTC.