Abstract

This current study focuses on the working capital management of Bharat Heavy Electricals Limited (BHEL) leading company in the heavy electrical industry in India, which is located in Visakhapatnam. Working capital management has become one of the most important aspects of financial statements in any business entity, and the BHEL company follows rules and regulations to ensure future solvency and maintain a balance between current assets and liabilities. Working capital management plays a significant role in the better performance of manufacturing firms. Therefore, excess working capital causes no profit, and the shortage of working capital results in a low rate of return on investment and leads to bankruptcy this paper used to know how working capital influence the company performance, and determine how to set working capital ideally. To understand better how to manage working capital and to get how well working capital help business for smooth performance and productivity of activities, to identify the debtor, creditor, inventory, and working capital turnover ratios over the last five years, and finally to make recommendations and suggestions for better working capital management in BHEL.

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