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:
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 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 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 written by A. Vijay Kumar and published by Northern Book Centre. This book was released on 2001 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study of working capital is of major importance to internal and external analysis because of its close relationship to current day-to-day business. In fact, the study of working capital management needs special attention for the efficient working and survival of a business. It has been often observed that the shortage of working capital leads to the failure of a business. The proper management of working capital may bring about the success of a business firm. To run the business smoothly and to meet the day-to-day operational requirements, working capital funds are very essential. With this background in view, the present study was undertaken for a proper insight into the Management of working capital in the sugar industry. The book provides multidirectional and multidimensional investigation of various aspects of working capital management. The book discusses all the important aspects in a systematic manner. Apart from its extensive coverage and lucid presentation, the strength of the book lies in its Indian background. This book will be of immense use particularly to University and College teachers, Chartered Accountants, Company Secretaries, M.Com. B.Com., and MBA students and other professional courses. In addition, it would be a useful reference book for researchers and Financial Managers.
Download or read book Working Capital Variations by Industry and Implications for Profitable Financial Management written by Walid Masadeh and published by . This book was released on 2018 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: Data on annual working capital and profitability for 5 years, 2010-2015, in 7000 U.S. companies were grouped into three industrial sectors, retailing, production, and services. Mean current and inventory ratios and profitability were calculated for each industrial sector, and the correlation and regression tests were run for data analysis. No significant difference in profitability was found between industries. However, within industries, a correlation was found between current ratio, sales inventory ratios, and profit margin. A positive correlation was found between current and sales inventory ratios and profit margin in the production industry. In the retail industry, no correlation was found between current ration and profit margin, but a negative correlation was found between sales inventory ratio and profit margin. In the services industry, a correlation was found between current ratio and profit margin, and a negative correlation between sales inventory and profitability. High inventory volumes are profitable to manufacturing and production industries. Low inventory volumes are profitable in retail industries. None, if not very little inventory is profitable for the services industry. From the findings, a predictive model was developed for profitable working capital management. Further research that tests the model is suggested using data from other companies and countries.
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 Managing Working Capital it Depends Upon the Type of Retail Business written by Geraldine Grosch and published by GRIN Verlag. This book was released on 2009-03-17 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2009 in the subject Business economics - Trade and Distribution, grade: 1,1, University of Southampton (Southampton Solent University), language: English, abstract: This assignment aims to identify whether the effect of working capital is variable for different types of retail businesses. Therefore, working capital management, the term itself and its elements is illustrated first, followed by the examination of the concrete examples of the UK retailing industry to show differences in distinct retail types. Finally, to demonstrate the understanding of this topic, an effective approach for managing working capital for a carpet retailer will be formulated.
Download or read book Is Working Capital Management a Key Determinant on Corporate Profit written by Hong Yuh Ching and published by LAP Lambert Academic Publishing. This book was released on 2012-06 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this book is to study the impact of the working capital management in corporate profit. Moreover, to study whether this impact is distinct for companies that use working capital intensively when compared with companies that use fixed capital intensively in their business environment. The authors selected 33 companies from the industrial sector in Brazil in two distinct groups. The first group is formed of companies from the cyclical consumer goods industry with current asset greater than 50% of their total asset. The other one is non-cyclical goods industry, with companies with non-current asset concentrated in fixed asset. The authors applied multivariate statistical methods to identify the working capital management together with other main components of financial structure. The working capital indicators were less able to explain the behavior of corporate profit and this inability was similar for both groups of companies. This raises the issue of the real importance of working capital management on corporate profitability, when compared to the other components involved. The findings in the book corroborate for a lower importance of working capital management.
Download or read book Relationship of Working Capital Management with Profitability written by Habib Ahmad and published by LAP Lambert Academic Publishing. This book was released on 2015-12-03 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is written on the measurement of the profitability in the correspondence of all measures of working capital management which are Average Collection Period, Inventory Conversion Period, Average Payment Period and Cash Conversion Cycle. This research is on the Food & Personal Care Sector in Pakistan as there no other significant research done on this topic before. Following research questions were framed: 1: What factors affect a performance of firm's working capital management? 2: How efficiently a firm converting its working capital into ready money? 3: How company value enhances through efficient working capital management? The analysis is limited to five years of data study from 2010-2014. Due to specific nature of study, firms in financial and other manufacturing sectors are excluded. All firms of Food and Personal care products have not been included in research sample. Certain firms are excluded due to their particular type of activity. Due to shortage of latest literature in the context of Pakistan's WCM has narrowed down our research output. Lastly, overall shortage of time is the main factor that restricted the output of our study.
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 Working Capital Management WCM and Corporate Profitability CP written by Ajanthan Alagathurai and published by . This book was released on 2014 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital is needed for day-to-day operations of a firm. The purpose of this study is to investigate the relationship between working capital management and corporate profitability and to identify the variables that most affect corporate profitability. Working capital management is considered to be a vital issue in financial management decision and it has its effect on liquidity as well as on profitability of the firm. Moreover, an optimal working capital management positively contributes in creating firm value. In this study, three sectors are selected as a sample size: manufacturing (MFG), Beverage Foods and Tobacco (BFT) and Chemical and Pharmaceuticals (CP) sector. The time period is from 2007-2011. The Profitability has been measured in terms of net profit margin (NPM); return on assets (ROA) and return on equity (ROE). Cash conversion cycle (CCC), age of inventory (AI), age of creditors (AC), age of debtors (AD) have been used as explanatory variables whereas liquidity ratio (LR) and current ratio (CR)) and interest coverage ratio (ICR) have been used as control variables. Descriptive statistics, Pearson's correlation and regression analysis are used in the study. The relationship between working capital management and corporate profitability was confirmed. The results which are robust to the presence of endogeneity, demonstrate that managers can create value by increasing their firm's number of day's accounts payable than increasing number of day's accounts receivable and inventories. Equally, shortening the cash conversion cycle also improves the firm's corporate profitability.
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 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 The Relationship Between Working Capital Management and Profitability for Malaysian Industrial Product Sector written by Azyan Zulkifli and published by . This book was released on 2015 with total page 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 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.
