International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 3 (May-June 2025) Submit your research before last 3 days of June to publish your research paper in the issue of May-June.

Working capital management and its impact on profitability of flipkart

Author(s) Harsh Yadav
Country India
Abstract Working capital management plays a crucial role in ensuring the smooth operation and financial stability of any business. It involves the efficient management of a company’s short-term assets and liabilities to ensure that it can meet its operational expenses and short-term debt obligations. In the case of Flipkart, one of India’s leading e-commerce giants, effective working capital management has had a significant impact on its profitability and overall performance.
Firstly, proper working capital management helps Flipkart maintain optimal inventory levels. As an e-commerce platform dealing with a wide range of products, Flipkart must ensure it holds enough stock to meet customer demand without overstocking, which can tie up capital unnecessarily. Through the use of data analytics and demand forecasting, Flipkart manages its inventory efficiently, reducing holding costs and improving cash flow.
Secondly, Flipkart’s ability to negotiate favorable payment terms with suppliers and delay outflows while accelerating customer payments contributes to better liquidity. By shortening its receivables cycle and managing its payables effectively, Flipkart ensures that it has sufficient working capital to reinvest in growth opportunities, marketing, and technological advancements, thereby boosting profitability.
Thirdly, Flipkart uses technology to streamline its operations and working capital cycle. Automation in logistics, supply chain, and financial reporting reduces the time and resources needed to manage day-to-day operations. This efficiency directly translates into cost savings and improved margins, both of which are critical in the competitive e-commerce industry.
Field Business Administration
Published In Volume 7, Issue 3, May-June 2025
Published On 2025-05-26
DOI https://doi.org/10.36948/ijfmr.2025.v07i03.46001
Short DOI https://doi.org/g9mn3c

Share this