High and volatile debt-equity ratio and interest coverage ratio ultimately affects working capital management. According to RBI data, many steel companies are experiencing debt service difficulties and are resorting to debt restructuring with a growing incidence of non-performing assets. The global economic slowdown occurred in the year 2007-08 has also left some lessons for internal re-engineering and lean six sigma both in finance and production to achieve profitability within our management elements. Hence, the study has been taken for bringing improvement in financial health by considering some of the internal factors affecting working capital and profitability. Optimum working capital results in business and good financial health.