Abstract
In this research work, an attempt is made to investigate the role of financial factors in determining the working capital requirements for TANCEM. The data for analysis are the financial statements of TANCEM’s two cement manufacturing units at Ariyalur and Alangulam for the period of 10 years from 2003-2004 to 2012-2013. A model is specified with WCTA as dependent as a proxy for working capital and Annual cash conversion cycle), Sales growth, Leverage, Firm size, and Return on assets as independents and run using multiple regression techniques. The results of the analysis have shown that the cash conversion cycle is the most important factor in determining the working capital requirements of TANCEM.
Key Words: Working capital, Descriptive analysis, Correlation analysis, Multiple regression, Cash conversion cycle and Causal relationship
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