Abstract:
Purpose: The Purpose of this study is to find out whether working capital management
affects the performance of leather industry or not, For every Organization WCM is
important source of success and going concern. The performance of company Drive
from profitability of company. Working capital management is very important now for
managing the current assets and current liabilities. Company may be having great
amount of working capital to boost their company value. According to previous
research it has been proved that their is link between working capital and with the
performance of company.
Research Methodology
This research work depends on the 10 year financial statement (2007-2016) of 3
leather industry to measure the performance, Basically the performance the is
calculated in term of the profitability by the help of returns on assets(ROA), return on
equity(ROE), EPSearnings per share and GP%. The research carries out on 2 variables
which are considered as dependent variable, & another is the independent variable used
in measure and identify the situation of the organization. The elements of the variables
are these:
1- Dependent variables are these:
a. Return on Assets
b. Return on equity
c. Net Income
d. Earnings per share
2- Independent Variable
a. Debt Ratio
b. WACC
c. Total Assets
Findings of the Research
The key finding of this current study is that working on the cost of capital finding for
the case of leather industry which we selected in the leather sector i.e. Bata'&service
and then work on to find the impact of cost of capital and what is the impact on the
entities’ profitability profile specifically focusing our study on the leather sector, &
ascertain relationships with respect to the selected dependent & independent variables
