WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF KAJARIA CERAMICS LIMITED: A FINANCIAL ANALYSIS

Abstract

Working capital management is an important component of financial management because it influences liquidity, operational efficiency and profitability. The ceramic industry requires substantial investment in inventories, trade receivables and other short-term assets because manufacturing and distribution activities involve continuous production, storage and credit sales. The present study analyses the working capital position and financial efficiency of Kajaria Ceramics Limited using secondary data obtained from published annual reports and financial statements. The analysis covers current ratio, inventory turnover ratio, trade receivables turnover ratio, trade payables turnover ratio, net capital turnover ratio and working capital cycle. The findings show that the company maintained a comfortable liquidity position, while inventory and receivables turnover improved in 2024–25. The reported working capital cycle also shortened. However, profitability-related indicators declined, highlighting the need to balance liquidity and profitability. The study concludes that disciplined working capital management is essential for sustainable financial efficiency in the ceramic industry.