Abstract: Working capital management is a critical determinant of financial performance, especially in capital-intensive sectors such as hospital equipment industries. These industries operate in a complex environment characterized by high inventory investment, extended receivables, dependence on institutional buyers, and continuous operational expenditure. Inefficient working capital management often results in liquidity stress, procurement delays, and reduced profitability. The present study examines the impact of working capital management on profitability and liquidity of selected hospital equipment industries in Madhya Pradesh. The study is based on primary data collected from 40 respondents representing 10 major hospital equipment companies operating across Indore, Bhopal, Jabalpur, and Gwalior. Descriptive statistics, percentage analysis, and Pearson’s correlation coefficient were employed to analyze the data. The results reveal a strong positive relationship between efficient working capital management and profitability (r = 0.68, p < 0.01), and a very strong association between inadequate working capital management and liquidity problems (r = 0.72, p < 0.01). The study concludes that effective management of inventory, receivables, payables, and cash is essential for improving profitability, maintaining liquidity, and ensuring sustainable growth of hospital equipment industries. The findings offer valuable insights for managers, policymakers, and financial planners in the healthcare equipment sector.

Keywords:Working Capital Management, Profitability, Liquidity, Hospital Equipment Industry, Madhya Pradesh.