This study aims to know the relationship and the impact of the working capital management on the operating profit of Rice mills in Nizamabad district of Telangana state. The study has adopted the qualitative research approach for the examination of working capital management Impact on operating profit. The study has considered the secondary data for the duration of 5 years i.e. 2016-17 to 2020-21. The study applied the bivariate analysis and the ordinary least squares through the SPSS and E-views software. The study examined the relationship of working capital management and operating profit by the statistical method bivariate correlation. The study attempted to identify the working capital management that impact operating profit- Ordinary Least squares. This study depicts an effect through the current ratio, liquid ratio, working capital management ratio, inventory turnover ratio and receivables turnover ratio. The study had examined that effect of these by the change in the operating profit year on year. The study is one of the first attempts to know the relationship as well as impact of the working capital management ratios with operating profit. Here, the study found that there is a strong positive relationship of the current ratio and the inventory turnover ratio resembles that operating profit with these ratios have the strong relationship with each other (Kruti A. Patel 2015) and positive impact of the inventory turnover ratio and the working capital management ratio on the operating profit meaning that if the turnover ratios increases there is an increase in the operating profit.