Short-Term Liquidity Management - A Study of Indian Steel Companies

Dr. Amalendu Bhunia .


The overall efficiency is vital from the viewpoint of short-term liquidity and at the same time proper plane of profitability is required for the business enterprises. Consequently, the affiliation between short-term liquidity and profitability is one of the most imperative areas necessitating management analysis. In the present study, two private sector steel companies operating in India has been selected. For analysis, accounting ratios and statistical tools i.e., A.M., C.V., multiple correlation and regression has been used. Keeping this in view, a study of managing liquidity of the selected private sector steel companies is undertaken in the present work.


Secondary data, multiple regression analysis, financial management, Indian steel, performance

Full Text:



Steel Scenario yearbook. 2007. “Performance Highlights”, Steel Scenario Journal, Kolkata.

Steel Scenario yearbook. 2010. “Performance Highlights”, Steel Scenario Journal, Kolkata.

Agarwal, J.D. (1988), “A goal programming model for working capital management,” Finance India, Vol. 2, Issue 2.

Bhunia, A. (2010), “A trend analysis of liquidity management efficiency in selected private sector indian steel industry”, International Journal of Research in Commerce and Management, Volume-1 Issue-5 (Sep, 2010).

Chatterjee, M. 2007. “World Steel Industry and India”, Steel Scenario Journal, Kolkata, Vol. 16/Q4.

Chakraborty, K. (2008), “Working Capital and Profitability: An Empirical Analysis of Their Relationship with Reference to Selected Companies in the Indian Pharmaceutical Industry,” The Icfai Journal of Management Research, Vol. 34.

Eljelly, A. (2004), “Liquidity-Profitability Tradeoff: An empirical Investigation in An Emerging Market”, International Journal of Commerce & Management, 14(2), 48 – 61.

Garcia-Teruel, P.J. and Martinez-Solano, P. (2007), “Effects of working capital management on SME profitability,” International Journal of Managerial Finance, Vol.3, Issue 2.

Rafuse, M.E. (1996), “Working capital management: an urgent need to refocus,” Management Decision, Vol. 34, Issue 2.

Raheman, A. & Nasr, M. (2007) Working capital management and profitability – case of Pakistani firms. International Review of Business Research Papers, 3 (1), 279-300.

Singh, P. (2008), “Inventory and Working Capital Management: An Empirical Analysis,” The Icfai University Journal of Accounting Research, Vol. 35.

Singh, J.P. and Pandey, S. (2008), “Impact of Working Capital Management in the Profitability of Hindalco Industries Limited,” The Icfai University Journal of Financial Economics,Vol. 36.

Lee, A.H.I. and Kang, H.-Y. (2008), “A mixed 0-1 integer programming for inventory model: A case study of TFT-LCD manufacturing company in Taiwan,” Kybernetes, Vol. 37, Issue 1.

Bhunia, A. (2007), “Working Capital and Liquidity Management of Iron and Steel Enterprises in India: A Comparative Study between SAIL and TISCO”, Unpublished UGC-Minor Research Project, Eastern Region, Kolkata.


  • There are currently no refbacks.

Editorial Office:

Educational Research Multimedia & Publications,
S.N. 21, Plot No 24, Mirza Ghalib Road Malegaon Nasik,
Maharashtra India - 423203.
+919764558895 (whatsapp),,

Copyrights © 2010-2020 - ERM Publications, India     

This work is licensed under