D. Sujatha, Dr. Ch Shankar 4874 Turkish Online Journal of Qualitative Inquiry (TOJQI) Volume 12, Issue 5, May, 2021: 4874 - 4881 Research Article An Empirical Study of Association between Working Capital Management (WCM) and Profitability: Evidence from Bombay Stock Exchange (BSE) Listed FMCG Companies D. Sujatha a , Dr. Ch Shankar b a Research Scholar, KLHBS, KLEF, Hyderabad b Associate Professor of Finance, Koneru Lakshmaia Education Foundation (Deemed to be) University, Hyderabad Abstract WCM is also known as short-term financial management and is focused mainly with CA and CL activities. Due to its high impacts on profitability and liquidity, WCM is important to the success of enterprises. The study's primary objective was to examine at the impact of WCM on Profitability with reference to the BSE Listed FMCG Companies. Panel Data has been collected for Analysis, 71 FMCG listed Companies, 5 years balance sheets data used for analysis. The analysis tracked down a solid negative connection between the proportions of WC management including AR, AP, CCC, FATA, SL and DR with profitability. The findings of an investigation of the association between WCM and profitability on the Bombay Stock Exchange clearly found that the number of days AR, INV, and profitability are mostly negative. As an outcome, we say that managers can increase revenue by reducing the number of days AR and INV. Keywords: Working Capital, WCM, Profitability, FMCG I. Introduction WCM is also known as short-term financial management and is focused mainly with CA and CL activities. WCM is also known as short-term financial management and is focused mainly with CA and CL activities (Richard Kofi Akoto, et, al. 2013). The way WC is managed has a significant impact on a company's profitability. This result shows that there is a specific amount of WC requirements that may optimise returns.(Deloof, 2003) defines WCM entails planning and regulating CA and CL in a way that, on the one hand, decreases the risk of incompetence in meeting required short-term needs and, on the other hand, prevents wasteful investment in these assets. (Bis.org and Eljelly, 2004). WCM is described as an accounting strategy that focuses on maintaining correct CA and CL levels. WCM gives a corporation with adequate liquidity to fulfil its short-term obligations (Raheman & Nasr, 2007). WCM is very important in terms of profitability growth. This is because the firm's activities are difficult to manage without a good WCM. WCM has been a big concern, particularly in developed nations, and as a result, research has been performed in many areas of the world, particularly in developed nations, to explain the link between WCM and profitability (Ntui Ponsian, et.al 2014). II. Literature Review: