Sound working capital management is crucial to the survival of an organization. It is also imperative for the growth of an organization. The management of receivables is a significant component of a firm’s working capital management. Present study empirically examines the effect of efficiency of receivables management, measured by debtor’s turnover ratio, in the commercial vehicle industry in India on the firm’s profitability. Profitability was measured using Return on Capital Employed. The research was conducted for the period 2009 to 2016. The findings indicate a significant positive relationship between debtor’s turnover ratio and profitability of the firm. This implies that receivables management should be a key focus point for improving profitability in this industry.

Sound working capital management is crucial to the survival of an organization. It is also imperative for the growth of an organization. The management of receivables is a significant component of a firm’s working capital management. Present study empirically examines the effect of efficiency of rec...