Paper Title :A Comparative Study of Working Capital Management, Solvency and Profitability of Private and State-Owned Power Distribution Utilities Using Mann-Whitney U Test

Author :Syed Azhar

Article Citation :Syed Azhar , (2018 ) " A Comparative Study of Working Capital Management, Solvency and Profitability of Private and State-Owned Power Distribution Utilities Using Mann-Whitney U Test " , International Journal of Management and Applied Science (IJMAS) , pp. 11-14, Volume-4,Issue-1

Abstract : The research paper attempts to compare the working capital management, solvency and profitability of four private owned and nineteen state owned utilities for the period of 2004-05 to 2013-14. Working capital management is explained in terms of liquidity, management efficiency, and solvency whereas profitability is explained by return on capital employed. Statistical tools such as mean, standard deviation and Mann Whitney U test are used in this study. The study found that there is no significant difference in the management of liquidity (current ratio and liquid ratio), management efficiency (working capital turnover ratio, debtors turnover ratio, creditors turnover ratio and collection efficiency), solvency (interest coverage ratio) and profitability (return on capital employed) except in a significant difference is found in the management of cash in proportion to current liabilities (absolute cash ratio) and debt equity ratio of private and state owned power distribution utilities. Index terms - Working Capital Management, Liquidity, Management Efficiency, Solvency, Profitability, Power Distribution Utilities.

Type : Research paper

Published : Volume-4,Issue-1

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