Effects of Size on Working Capital Levels of the Firms’ in Steel Industry in India

Prof. D. P. Singh .


Present study is about investigating the impact of growing size of the company on working capital levels. I considered measures of working capital levels of a company such as net working capital and working capital to sales. The investigation is about how growing size of the company affects working capital levels.I investigated the relationships between size of the firms and various working capital levels, such as net working capital ratio working capital to sales ratio. It is observed that net working capital level and working capital to sales ratio is negatively related to size of the firms. Two relationships net working capital ratio, working capital to sales ratio were found significant at 1%.As no work in the past is done on this relationship our results will significantly contribute to the body of knowledge.


Net working capital level, working capital to sales, steel, regression, correlation and India.

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