Download or read book Relationship Between Working Capital Management and Profitability in Retail Sector Companies Listed on the Johannesburg Stock Exchange written by Innocent Gumbochuma and published by . This book was released on 2014 with total page 122 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital management is an extremely important area of financial management as current assets normally represent more than half of the total assets of a business. Literature has shown that efficient management of working capital will lead to more profitability and creating more market value. This study sought to ascertain the impact of the working capital management on firm profitability in the retail sector of the South African Johannesburg Stock Exchange listed companies.
Download or read book Management of Working Capital by Listed South African Retail Companies written by Elmarie Louw and published by . This book was released on 2014 with total page 278 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 An Impact Analysis of Working Capital Management on Profitability of Working Capital Intensive Companies Listed on the Johannesburg Stock Exchange written by Mansueta Maria Nandjila Nakale and published by . This book was released on 2009 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Relationship Between Working Capital Management and Profitability written by Nasser Alsulayhim and published by . This book was released on 2019 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital management is an important concept that could influence companies in many ways. An efficient management of working capital can help a company to manage its finances and increases its profitability. This study investigates the relationship between working capital management and profitability in non-financial companies listed in the Saudi Stock Exchange. A sample of 67 companies is used for a period of ten years (2007-2016). Quantitative method using multiple linear regression and pooled data set is used for analysis. The results indicate a positive relationship between working capital management and profitability. However, each company could have a different optimal level of working capital and could require different strategies to increase profitability. This study is limited to non-financial companies listed in the Saudi Stock Exchange. This study is a positive contribution to working capital management literature as it uses a relatively large sample, a longer time period, and multiple profitability proxies in the context of Saudi Arabia which has few researches in this area.
Download or read book Applied Economic Research and Trends written by Nicholas Tsounis and published by Springer Nature. This book was released on with total page 1229 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Relationship Between Working Capital Management and Profitability written by Garima Sisodia and published by LAP Lambert Academic Publishing. This book was released on 2011-08 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital is the life-blood for any organization. Even profit making firms cannot survive without proper management of working capital. The present study attempts to examine empirically the relationship between profitability and working capital management for NSE listed firms of Indian Steel and Pharmaceutical Industries. A number of ratios belonging to liquidity, turnover and asset structure are used as proxies for working capital management and return on total assets as a proxy for the profitability in the study. The study endorses the significance of working capital management. It demonstrates the crucial influence of working capital management on the profitability of the two Indian industries. Correlation analysis revealed that the profitability of Indian Pharmaceutical Industry is significantly associated with operational efficiency, receivables' management and payables' management.
Download or read book The Relationship Between Working Capital Management and Profitability of Listed Manufacturing Companies In Sri Lanka written by Sarathadevi Anandasayanan and published by . This book was released on 2014 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital management is important part in firm financial management decision. An optimal working capital management is expected to contribute positively to the creation of firm value. To reach optimal working capital management firm manager should control the tradeoff between profitability and liquidity accurately. The objective of this study is to investigate the relationship of corporate profitability and working capital management. We used a sample of 30 Manufacturing companies listed in the Colombo Stock Exchange (CSE) for the period of 2003-2007. The dependent variable, return on total assets is used as a measure of profitability and the relationship between working capital management and corporate profitability is investigated using panel data analysis. The results of this research showed that there is statistical significance between profitability and the cash conversion cycle. Moreover managers can create profits for their companies by handling correctly the cash conversion cycle and keeping each different component (accounts receivables, accounts payables, inventory) to an optimum level.
Download or read book Impact of Working Capital Management on Profitability in UK Manufacturing Industry written by Senthilmani Thuvarakan and published by . This book was released on 2013 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital management is given higher priorities by the corporate world. Companies which are effectively using their working capital components are likely to have competitive advantage over their competitors. The purpose of this research is to investigate the relationship between the working capital components and corporate profitability in different industries. 60 manufacturing companies, 20 construction companies and 17 telecommunication companies listed on the London stock exchange is used for this research covering the period of 2006-2011. The dependent variable, profitability is measured using gross operating income. The independent variables are receivable days. Payable days, inventory days, cash conversion cycle, debt, and size of the firm. Pearson's correlation and regression analysis to explore the relationship between the profitability and the working capital components. The results show that there is no significant relationship between the working capital components and profitability. There is a negative relationship between gearing and profitability in manufacturing firms.
Download or read book The Relationship Between the Management of Payables and the Return to Investors written by Taryn Moodley and published by . This book was released on 2017 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Effective working capital management assists a firm in achieving improved liquidity through the management of the components of receivables, inventory and payables. Previous studies have established that changes in working capital have a strong positive correlation to profitability and that whilst changes to receivables and inventory have a positive correlation to profitability, changes in payables have an inverse relationship. The inverse correlation of payables and profitability is contrary to the theory that advocates extending payment terms as a means of managing working capital and improving liquidity. We apply a style-based test to an extensive database of Johannesburg Stock Exchange (JSE) listed South African companies over the period 1986 -2014. We find that for those companies in industries that have a significant investment in payables, there is a significant association between payable days and shareholder return, which supports the general theory of working capital management.
Download or read book Working Capital Management and Profitability written by Waseem Ullah Jan and published by LAP Lambert Academic Publishing. This book was released on 2014-07-02 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: The working capital management plays an important role for success or failure of firm in business because of its effect on firm's profitability as well on liquidity. The working capital management refers to the management of working capital, or precisely to the management of current assets. A firm's working capital consists of its investments in current assets, which includes short-term assets-cash and, inventories, receivable and marketable securities. Therefore, the working capital management refers to the management of the levels of all these individual current assets. The universe of the study is textile industry of Pakistan, which is one of the oldest and the fast developing industry in the large scale sector of Pakistan. The study is based on secondary data collected from listed firms in Karachi stock exchange for the period of 2001-2006 with an attempt to investigate the relationship existing between profitability, and working capital management components for listed firms in Karachi stock exchange. The reason for restricting to this particular time period is that the latest and updated data for investigation is available for this period.
Download or read book Relationship Between Working Capital Management and Profitability of Listed Companies in the Athens Stock Exchange written by Ioannis Lazaridis and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we investigate the relationship of corporate profitability and working capital management. We used a sample of 131 companies listed in the Athens Stock Exchange (ASE) for the period of 2001-2004. The purpose of this paper is to establish a relationship that is statistically significant between profitability, the cash conversion cycle and its components for listed firms in the ASE. The results of our research showed that there is statistical significance between profitability, measured through gross operating profit, and the cash conversion cycle. Moreover managers can create profits for their companies by handling correctly the cash conversion cycle and keeping each different component (accounts receivables, accounts payables, inventory) to an optimum level.
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 Optimizing Working Capital Management and Its Impact on Profitability A Study of Retail Enterprises Listed on the Stock Exchange in Vietnam written by Linh Hoang and published by . This book was released on with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital management (WCM) is crucial to corporations’ profitability,particularly in developing economies like Vietnam, where long-term capital markets are not well established. This study investigates the link between WCM and the profitability of retail enterprises in Vietnam. The research formulates four hypotheses and adopts a quantitative approach to examine these hypotheses. WCM is assessed through key indicators, including the Cash Conversion Cycle (CCC), Days in Inventory (INV), Days Sales Outstanding (DSO), and Days Payables Outstanding (DPO). The Return on Assets(ROA) and Return on Equity (ROE) metrics measure profitability. The study employs descriptive analysis, correlation analysis, and pooled regression analysis to explore the assumptions based on data collected from 39 retail corporations listed on the Vietnam Stock Exchange. The findings of this thesis reveal that effective WCM is significantly associated with profitability, as demonstrated by CCC, INV, DSO, and DPO. Therefore,the study recommends that managers maintain appropriate limits for Company size(SIZE), Sales growth (SGROWTH), and Current ratio (CR) to optimize the financial performance of retail enterprises in Vietnam. By shedding light on the relationship between WCM and profitability, this thesis contributes to the existing literature on the subject and offers valuable insights for retail enterprises in Vietnam to improve their financial performance.
Download or read book Impact of Working Capital on the Profitability of South African Firms Listed on the Johannesburg Stock Exchange written by Mkhululi Ncube and published by . This book was released on 2012 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Impact of Working Capital Management on Profitability written by Sujeewa Kodithuwakku and published by . This book was released on 2015 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Sri Lankan context, manufacturing sector has been recognized as an important strategic sector for socio-economic development and provides a significant contribution to the growth of the economy (Press Note Annual Estimates of GDP, 2012, p.5). Hence, it plays a vital role, which determines the driving force of the economy (Press Note Annual Estimates of GDP, 2012, p.5). Consequently, manufacturing companies encounter several issues and challenges in the effort of enhancing their profitability and reduce the threat of insolvency. Specifically, the Sri Lankan manufacturing sector is faced with the dilemma of maintaining an appropriate trade-off between working capital (WC) and profitability. In this study an attempt has been made to identify the impact of WC management on profitability of listed manufacturing companies. This study is primarily based on secondary data that were extracted from the annual reports of the 20 manufacturing companies listed in Colombo Stock Exchange (CSE). Balanced Panel Data (BPD) of these 20 manufacturing companies were analyzed by using the Pearson's Correlation and Ordinary Least Squire (OLS) regression model to establish the relationship between WCM and the profitability. The study found a negative relationship between the profitability and Debtor's Conversion Period (DCP), Inventory Conversion Period (ICP) and Cash Conversion Cycle (CCC), but a positive relationship between profitability and Creditor's Conversion Period (CCP). Moreover the financial leverage, sales growth and firm size also have a significant impact on the profitability. Based on the key findings from this study it has been concluded that the management of a firm can create value for its shareholders by reducing the DCP. The management can also create value for its shareholders by increasing inventories to a reasonable optimum level. Firms can also take long period to pay their creditors as far as they do not strain their relationship with them. As a recommendation it is suggested for all the manufacturing companies to have a greater focus on the relationship between WCM and profitability, by adopting an appropriate management which will ultimately lead to higher profitability and lower threat of insolvency.
Download or read book The Relationship Between Working Capital Management and Corporate Profitability Within the Retail and Industrial Sectors of South Africa written by Rubia Manuel and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
