Download or read book Impact of Working Capital Management Policy and Financial Leverage on Financial Performance written by Khalaf Taani and published by . This book was released on 2015 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper aims to determine the impact of working capital management policy and financial leverage on financial performance of Jordanian companies measured in terms of net income, return on equity (ROE) and return on asset (ROA). Pearson's rank correlation test, ANOVA F- test, and multiple regression analysis were used on 45 companies included in the industrial sector in Jordan ranked in terms of gross revenues. Results of the study indicated that firm's working capital management policy, financial leverage, and firm size have significant relation to net income. However working capital management policy has no significant impact on return on equity (ROE) and return on assets (ROA).
Download or read book Working Capital Management written by Lorenzo Preve and published by Oxford University Press. This book was released on 2010-04-28 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working Capital Management provides a general framework that will help managers understand working capital using a comprehensive approach that links operating decisions to their financial implications and to the overall business strategy. It will also help managers to gain a better understanding of the key drivers to profitability and value creation.
Download or read book Working Capital Management and Its Impact on Financial Performance written by Rathiranee Yogendrarajah and published by . This book was released on 2014 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: A Working capital management ensures a company has sufficient cash flow in order to meet its short-term debt obligations and operating expenses. The needs of efficient working capital management must be considered in relation to other aspects of the firms' financial and non-financial performance. An efficient Working Capital Management is expected to contribute to the high financial performance. The main purpose of this study was to investigate the working capital management and its impact on firms' financial performance. The efficiency of working capital management was investigated through the cash conversion cycle. The research problem focused here -- What extent the working capital management influences on financial performance of the trading firms? -- A strong significant relationship between working capital management and profitability has been identified in previous research. It was assumed that -- The efficient working capital management has strong impact on financial performance. -- The dependent variable Return on Assets is used as a measure of profitability of financial performance and its' relationship with working capital management was investigated to find out the results. Samples of 9 trading firms have been selected from the companies listed by the Colombo stock exchange using Statistical Package for Social Sciences (SPSS) for the period of 2004 to 2009 to find out the results. The regression analysis results show that the high investment in inventories and receivables is associated with lower financial performance (ROA). For this analysis the inventories days, accounts receivable days, accounts payable days and cash operating cycle have been used. The findings also revealed that some firms have efficient working capital management and some have inefficient working capital management in the trends of working capital according to the cash operating cycle.
Download or read book Working Capital Management written by Lorenzo Preve and published by Oxford University Press. This book was released on 2010-04-28 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working Capital Management provides a general framework that will help managers understand working capital using a comprehensive approach that links operating decisions to their financial implications and to the overall business strategy. It will also help managers to gain a better understanding of the key drivers to profitability and value creation.
Download or read book Working Capital Management Concepts And Strategies written by H Kent Baker and published by World Scientific. This book was released on 2023-03-21 with total page 543 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital refers to the money that a company uses to finance its daily operations. Proper management of working capital is critical to financial health and operational success. Working capital management (WCM) aims to maximize operational efficiency by maintaining a delicate balance among growth, profitability, and liquidity. WCM is a continuous responsibility focusing on a firm's day-to-day operations involving short-term assets and liabilities. By efficiently managing a firm's cash, accounts receivable, inventories, and accounts payable, managers can help maintain smooth operations and improve a company's earnings and profitability. By contrast, poor WCM could lead to a lower credit score, financial insolvency, legal troubles, liquidation of assets, and potential bankruptcy.This book provides an objective look into the dynamic world of WCM. Its coverage extends from discussing basic concepts and their applications to increasingly complex and real-world situations. The book stresses that WCM is a combination of both art and science. This volume spans the gamut from theoretical to practical while offering the right balance of detailed and user-friendly coverage. Readers can gain an in-depth understanding of this subject from experts in this field. Those who want a broad survey will benefit, as will readers looking for more in-depth presentations of specific areas within this field of study. In summary, Working Capital Management: Concepts and Strategies provides a fresh look at this intriguing but often complex subject of WCM.
Download or read book Working Capital Management written by Bhalla V.K. and published by S. Chand Publishing. This book was released on 2014 with total page 916 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working Capital Management: An Overview 2. A Valuation Framework 3. Working Capital Policies 4. Cash Management Systems: Collection Systems 5. Cash Management Systems: Cash Concentration Systems 6. Cash Management Systems: Disbursement Systems 7. Forecasting Cash Flows 8. Corporate Liquidity And Financial Flexibility 9. Cash Management Optimisation Models 10. Receivables Management: Trade Credit 11. Receivables Management: Credit Granting Decisions 12. Monitoring Accounts Receivables 13. Payables Management And Instruments Of Short-Term Financing 14. Inventory Management 15. Programming Working Capital Management 16. Integrating Working Capital And Capital Investment Processes 17. Monetary System 18. Money Market In India 19. Banking System In India 20. Working Capital Control And Banking Policy ..... 27. Managing Short-Term International Financial Transactions Appendices Index
Download or read book Practices of Working Capital Policy and Performance Assessment Financial Ratios and Their Relationship with Organization Performance written by Muhammad Naeem Akhtar and published by GRIN Verlag. This book was released on 2012-07-17 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scientific Study from the year 2011 in the subject Economics - Case Scenarios, Iqra University (Iqra University, Islamabad Campus), course: Finance - Financial Management, language: English, abstract: The purpose this study is to highlight the application of working capital policy and the performance assessment financial ratios and to determine their relationship with organization performance. The target respondents were the finance executives/financial analysts of the companies. 64 properly filled questionnaires were processed for analysis. This study concludes that the finance executives consider that the proper practices of working capital and financial ratios are very important for the growth and performance of the organization. This research study also finds that there is positive and significant relationship between these practices and organization performance.
Download or read book The COVID 19 Impact on Corporate Leverage and Financial Fragility written by Sharjil M. Haque and published by International Monetary Fund. This book was released on 2021-11-05 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the impact of the COVID-19 recession on capital structure of publicly listed U.S. firms. Our estimates suggest leverage (Net Debt/Asset) decreased by 5.3 percentage points from the pre-shock mean of 19.6 percent, while debt maturity increased moderately. This de-leveraging effect is stronger for firms exposed to significant rollover risk, while firms whose businesses were most vulnerable to social distancing did not reduce leverage. We rationalize our evidence through a structural model of firm value that shows lower expected growth rate and higher volatility of cash flows following COVID-19 reduced optimal levels of corporate leverage. Model-implied optimal leverage indicates firms which did not de-lever became over-leveraged. We find default probability deteriorates most in large, over-leveraged firms and those that were stressed pre-COVID. Additional stress tests predict value of these firms will be less than one standard deviation away from default if cash flows decline by 20 percent.
Download or read book Working Capital Management And Control Principles And Practice written by Satish B. Mathur and published by New Age International. This book was released on 2007 with total page 548 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Comprehensive Text Systematically Explains The Various Principles, Policies And Methods Involved In Efficient Management Of Working Capital. The Indian Context Is Emphasised Throughout.The Book Provides An Indepth Analysis Of Such Critical Issues As * Assessment Of The Level Of Working Capital * Methods Of Financing * Control Over The Use Of FundsThe Book Discusses Both Fund Based And Non-Fund Based Working Capital Finance. It Also Explains Export, Information Technology And Software Industry Financing.The Book Presents Several Real Life Cases To Illustrate The Various Principles And Techniques.Each Chapter Ends With A Summery Providing A Quick And Useful Review Of The Chapter. Several Questions And Problems Are Also Included Throughout The Book For Self-Test.The Book Is An Ideal Text For Management And Commerce Students. It Would Also Serve As An Extremely Useful Reference Source For Practising Professionals And Consultants In The Finance And Banking Sectors.
Download or read book Working Capital Management written by Krish Rangarajan and published by Excel Books India. This book was released on 2006-08 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Working Capital Management and Firm Performance written by Mohsin Siraj and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study analyzes the effects of Working Capital management i.e. inventory management, receivable management and payable management, on the performance of the non-financial firms in Pakistan. Panel data of 280 nonfinancial firms enlisted in Pakistan Stock Exchange have been analyzed from 2000 to 2016. Firms' profitability were proximate with return on assets and return on equity; whereas for growth i.e. sales growth and asset growth were used. The impact of Working Capital management is captured through its constituent policies such as Inventory management, Receivable Management and Payable management. Firm size, liquidity and leverage are used as control variables. Results suggest that Working Capital management has a significant impact on firms' financial performance in terms of profitability, as well as growth. As far as component wise results are concerned, inventory management does influence the firms' growth and Payable management significantly, hence affecting the firms' profitability. However, only receivable management influences both profitability and growth.
Download or read book Impact of Working Capital Management on Profitability written by rafathunnisa Syeda and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The success of any business depends on its profitability, liquidity, and solvency. Liquidity plays an important role in the successful running of a business. Many prior studies have been conducted to measure the relationship between working capital and profitability. The results showed that the high investment in inventories and receivables is associated with lower financial performance. They found a negative relationship between Return on Assets and Inventory turnover and Cash conversion cycle the present study is designed to know the direct impact of working capital on profitability by choosing the days of collection, days of payment, days inventory converts to sales and finally the cash conversion cycle. This study examines the association between the profitability and working capital using the data of 15 US trading companies for the period of 2015 to 2019. The key points in this study are firstly there exists a negative relationship between the profitability and the average collection period, the lower the average collection period higher will be the profitability, indicating that a decrease in the number of days a firm receives payment from sales affects the profitability of the firm positively. Secondly there is a highly significant positive relationship between average payment period and profitability. This implies that the longer a firm makes the payment to its creditors, the more profitable it is. Thirdly the cash conversion cycle decreases it will lead to an increase in profitability of the firm, and managers can create a positive value for the shareholders which indicates that it has been maintained. The regression analysis showed the value for the R-squared in the model is 0.584, i.e., 58.4% of the variation in the dependent variable Net Profitability is explained by the independent variables.
Download or read book The impact of working capital management on the profitability of a manufacturing company written by Jones Jalis and published by GRIN Verlag. This book was released on 2021-02-22 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2018 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 4.5/5.0, , course: Accounting and Finance, language: English, abstract: This study aims to evaluate the impact of working capital management and its main components on the profitability of manufacturing companies having Nigeria Bottling Company as the case study. The study is restricted to manufacturing companies (Nigeria Bottling Company) and limits itself to the information in the annual report and accounts of the company under review. This study covers a period of eight (8) years (2009-2017). Three objectives, research question and hypotheses which will serve as a guide for the project writing giving the work good direction, were formulated. The Research design and study used where Ex Post-facto design and secondary source of data respectively, population of the study is the manufacturing companies represented by Nigeria Breweries Company PLC. The data collected will be analyzed using multiple regression and simple regression to establish the relationship between both variables used in the work.
Download or read book Working Capital Management and Profitability written by Muhammad Waqas Younas and published by LAP Lambert Academic Publishing. This book was released on 2011-09 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: Today's unpredictable economic conditions pose great challenges for firms that intend to: grow, make increased profits, have healthier financial condition, and to reduce any possible risks. Funds in working capital may be utilized to address these concerns. The present research study makes an endeavor to examine relationship between working capital management policies and profitability. According to results, industrial sectors are following, significantly, different approaches to manage their working capital. All sectors illustrated that a conservative working capital investment policy generate positive returns except for one sector. Moreover, adopting an aggressive financing policy leads to higher earnings in four sectors and three sectors depicted opposite results. Present study may contribute towards the existing finance literature and current study may help the financial managers and policy makers to enhance their return on assets and equity by managing a suitable working capital investment and financing policy.
Download or read book Working Capital Management written by N.K. Jain and published by APH Publishing. This book was released on 2004 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Working Capital Management during and after the Global Financial Crisis Evidence from Germany written by Christopher Thees and published by GRIN Verlag. This book was released on 2015-11-11 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2015 in the subject Business economics - Investment and Finance, grade: 1,3, Leuphana Universität Lüneburg (Institut für Bank-, Finanz- und Rechnungswesen (IBFR)), course: Bachelorkolloquium, language: English, abstract: The present thesis tries to figure out, if the Working Capital Management of German companies is reactive to changing interest rates for their refunding or if it is really a pro-active improvement since the beginning of the 2000s as claimed by the literature. After a theoretical definition of Working Capital, its functions, goals and its relationship to the management process, Working Capital will be set into a context of company crises to lead to the central object of investigation, the Global Financial Crisis. With a quantitative analysis via DataStream of the companies currently listed in the DAX, MDAX and SDAX (N=130) it will be examined, if the credit crunch for companies in the Global Financial Crisis and the easy refunding possibilities afterwards due to the easy money policy of the European Central Bank had effects on the quality of the Working Capital Management. The analysis of the data via SPSS will show, that the possibilities of refunding indeed influence this quality, whereby the intensity of the reactionary behaviour of the companies depends mainly on the object of cognition, which is in this thesis examined by the parameters size, age and industry sectors, so that the results could serve as a basis for further management research.
Download or read book The Effect of Working Capital Development on Financial Performance of Organization written by Nahid Maleki Nia and published by . This book was released on 2019 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: In today's challenging economy, with increasing environmental pressures and limited external resources, the current assets and liabilities as working capital have great importance and Optimal management of working capital of firms can be considered as a Competitive advantage for them. The main axis of this research is how development of working capital management influences on profitability and liquidity as two important factors of financial performance. This paper is an analytical - descriptive research that reviews the existing literature in this field and classifies them into two groups including the impact of working capital strategies on the performance and the other one is the impact of working capital indicators on the performance. This survey investigates the relationship between working capital strategies and working capital indicators with the performance of organization. The survey result shows that the impact of working capital strategies and indicators on profitability and liquidity should be considered simultaneously in development of working capital management.
