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 Accounting and Finance Innovations written by Nizar Alsharari and published by BoD – Books on Demand. This book was released on 2021-12-22 with total page 331 pages. Available in PDF, EPUB and Kindle. Book excerpt: The world is currently experiencing the advent of new information technologies with dynamic changes, which can be considered as one of the greatest business threats today. Accordingly, international business and academia have claimed to be working towards developing innovations in accounting and finance that are useful for all stakeholders. The recent accounting and finance scholarship has moved forward toward new innovations that advance professional practice. This book introduces and discusses new innovations in accounting and finance, including management accounting, blockchain, E-business models, data analytics, artificial intelligence, cryptocurrency, bitcoin, digital assets, and associated risks. It also sheds light on how and why accounting and finance innovations have changed over time. This book will help practitioners and academics develop and introduce new accounting and finance tools and concepts. It is also a useful resource for those working in the accounting and finance fields.
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 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 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 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 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 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 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 Financial Management from an Emerging Market Perspective written by Soner Gokten and published by BoD – Books on Demand. This book was released on 2018-01-17 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the main reasons to name this book as Financial Management from an Emerging Market Perspective is to show the main differences of financial theory and practice in emerging markets other than the developed ones. Our many years of learning, teaching, and consulting experience have taught us that the theory of finance differs in developed and emerging markets. It is a well-known fact that emerging markets do not always share the same financial management problems with the developed ones. This book intends to show these differences, which could be traced to several characteristics unique to emerging markets, and these unique characteristics could generate a different view of finance theory in a different manner. As a consequence, different financial decisions, arrangements, institutions, and practices may evolve in emerging markets over time. The purpose of this book is to provide practitioners and academicians with a working knowledge of the different financial management applications and their use in an emerging market setting. Six main topics regarding the financial management applications in emerging markets are covered, and the context of these topics are "Capital Structure," "Market Efficiency and Market Models," "Merger and Acquisitions and Corporate Governance," "Working Capital Management," "Financial Economics and Digital Currency," and "Real Estate and Health Finance."
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 Firm Performance written by Ruslan Stepanian and published by . This book was released on 2021 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates the relationship between working capital management and profitability among 188 publicly traded firms within the eurozone for the period 2016 to 2019. Working capital management was measured by days inventory outstanding, days sales outstanding, days payables outstanding, and cash conversion cycle. The profitability of a firm was captured by the basic earning power ratio. This study reveals a significant negative relationship between days inventory outstanding, days sales outstanding, days payables outstanding, and profitability of the firm. A significant positive relationship was found between the cash conversion cycle and firms performance. The research demonstrates that management of the firm can create value for the shareholders by reducing all three components of cash conversion cycle.*****This thesis investigates the relationship between working capital management and profitability among 188 publicly traded firms within the eurozone for the period 2016 to 2019. Working capital management was measured by days inventory outstanding, days sales outstanding, days payables outstanding, and cash conversion cycle. The profitability of a firm was captured by the basic earning power ratio. This study reveals a significant negative relationship between days inventory outstanding, days sales outstanding, days payables outstanding, and profitability of the firm. A significant positive relationship was found between the cash conversion cycle and firms performance. The research demonstrates that management of the firm can create value for the shareholders by reducing all three components of cash conversion cycle.
Download or read book Working Capital Management and Profitability written by Ankita Kathiriya and published by LAP Lambert Academic Publishing. This book was released on 2015-03-17 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research work is mainly based on secondary data and this is helpful to measure the relationship between working capital management and profitability of organization on basis of few years data and for the research ratio analysis is most important tool to identify the profitability and how it affected by the working capital management. This research will helpful to identify this relationship in other organization for taking as base.
Download or read book CAPITAL INVESTMENT AND FINANCING FOR BEGINNERS written by Dr. Ajay Tyagi and published by Horizon Books ( A Division of Ignited Minds Edutech P Ltd). This book was released on 2017-01-01 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: A corporate speculator embraces a monetary assessment while choosing whether to put resources into substantial resources or different business. The speculator needs to guarantee that it pays close to a reasonable incentive to buy the venture and that the monetary benefit for its proprietors is augmented. The part talks about monetary assessment with regards to venture choices with an emphasis on speculation valuation and organizing and assessment procedures. Capital gave to an organization, and any value produced inside, should just be put resources into resources if esteem is made for investors—that is, the point at which the estimation of financial advantages emerging from the advantages surpasses the cost of procuring those advantages.
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 Exploring the Relationship Between Working Capital Management Profitability and Capital Structure written by Abdalla Geth Abdussalam and published by . This book was released on 2017 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Objective - This paper explores the relationship between working capital management (WCM), profitability and capital structure. A preliminary framework provides an understanding of the role of WCM components with capital structure and profitability.Methodology/Technique - From the review of empirical studies it is confirmed that WCM is a main component in the financial aspects of the firms as even though WCM is targeted for the short-term decisions it has effect on the firm for the long-run.Findings - Companies need to use working capital policy and procedures in order to navigate performance. Emphasizing on WCM would lead to formal cost controls and performance together with firm's growth and productivity. The framework is set to help financial manager of the firms to balance the costs and benefits of debt and equity and reduce common obstacles on managing cash flows for long-term fixed investment.Novelty - The preliminary framework is original and unique that will contribute towards the enrichment of relevant literature. Practically, this study contributes to provide a better understanding of the managers and enable them to apply WCM strategies and make sure the firm is able to meet the stakeholder requirements.Type of Paper - Review.
Download or read book How Profitability Matters the Working Capital Management written by Ashfaq Ahmad and published by LAP Lambert Academic Publishing. This book was released on 2015-08-21 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main purpose of this study is to evaluate the influence of working capital management on textile firm's profitability. For this purpose panel data of KSE listed 115 textile companies from 2006-2011 is used. In this study, researcher used ROA as proxy of dependent variable that is profitability of the firm. Current assets to total asset ratio and Current liabilities to total asset ratio are used as independent variables. Quick ratio and debt equity ratio are used as control variables. GLS Regression analysis applied to find out the relationship between working capital policies and profitability. So, results show that conservative working capital investment policy have positive influence on firm's profitability. And aggressive working capital financing policy is also influence the profitability. QR has also positive relation with profitability but debt equity ratio is negatively related. Textile area of Pakistan is very important and considerable because this area is more productive. That's why the management of resources and obligations are also important to enhance its productivity. So, this study is useful for textile management to increase their profitability.
