Purpose: For corporations in order to deal with poor financial conditions and increased economic insecurity, efficient WC management has become essential. This study examines the effect on the profitability of the WC(WC) of corporations. The study also investigates the impact of companies' cash levels on the WC and profitability relationship. Design/Methodology/Approach: The study is based on analytical model to estimate the impact relationship of cash levels and profitability on WC utilizing the financial information from S&P BSE 500 companies. Using the OLS model & GMM, the mathematical model proposed in the paper was examined. Findings: This research contributes to a deeper understanding of the interactions between components of WC and shows the non-linear connection involving the link between WC and profitability of companies. Research Limitations: The findings are subject to competitive market variations. Also, the limits of the basic statistical approach used to validate the model.
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