Analysis of Working Capital Efficiency of Vegetable Oil Companies in India
Keywords:
Vegetable Oil Companies, Current Asset, Liquidity, and Profitability.Abstract
The research is mainly focused an operational efficiency of vegetable oil industry in India. In this research, the eight companies have been taken for analysis. The samples have been selected on the basis of total value of assets. Working capital efficiency of selected vegetable oil companies analysis by ratio analysis technique. Ratio analysis is a process of evaluating relationship between the component parts of financial statements to obtain a better understanding of the firm’s position and performance. Current ratio has been used to measure the liquidity position of the selected companies. To evaluate the efficiency of firms, Debtors Turnover Ratio, Inventory Turnover Ratio and Fixed Asset Turnover Ratio have been used. Return on Capital Employed has been used to analysis the profitability of the selected oil production companies. The findings and suggestions would be useful for further researcher and corporate people to improve their operational efficiency.
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