Download or read book Working Capital Management and Profitability A Case Study of Andhra Pradesh Power Generation Corporation written by Syed Azhar and published by . This book was released on 2017 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital management is important component of financial management. Usually it is found that short term management of capital is ignored, consequently leading to failure of businesses. Thus the study focus to make item wise analysis of each component of Gross Working capital for APGENCO using percentages and examine the impact of Working capital on profitability by using statistical tool such as Correlation analysis for the study period of 2005 to 2010. In the analysis working capital ratios such as current ratio, Liquid ratio, working capital turnover ratio, Inventory turnover ratio, receivables turnover ratio, cash turnover ratio and Return on Investment ratio has been used. The study found that Debtor share a major proportion of gross working capital and cash balances has been ignored by the company. Further WTR and DTR showed a high degree of positive correlation and CR, LR, and ITR showed a high degree of negative correlation between variables and profitability. Hence, the study of the impact of working capital ratios on profitability showed both negative and positive impact.
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 A Study On Performance Evaluation Of Select Mutual Funds In India written by Dr B Ratnavalli and published by Archers & Elevators Publishing House. This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Working Capital Management in Indian Paper Industry written by Rudra Prasanna Mahapatra and published by . This book was released on 2008 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 Working Capital Management and Its Impact on Profitability written by Tanushree Sharma and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Management of working capital is a crucial task for every manager in an organization, because it directly affects the liquidity and profitability of an organization. The present study investigates the importance of working capital management and its impact on profitability of Indian Oil Corporation Ltd. (IOCL). A few important ratios have been considered for highlighting the efficiency of working capital management. Pearson's simple correlation coefficient has been applied for measuring the degree of relationship between the working capital management and profitability. The results revealed that out of eight ratios relating to working capital management, four ratios, viz., Current Ratio, Current Assets to Total Assets Ratio, Current Assets to Sales Ratio, and Cash Turnover Ratio, registered positive association with the selected profitability ratio (ROI), and the remaining ratios like Debtors Turnover Ratio, Inventory Turnover Ratio, Working Capital Turnover Ratio and Quick Ratio witnessed a negative association with the selected profitability ratio.
Download or read book Performance Evaluation Of Thermal Power Corporations In India written by J. Durga prasad rao and published by Archers & Elevators Publishing House. This book was released on with total page 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 . This book was released on 2021-01-21 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Working Capital Management Practices written by Ashok Panigrahi and published by . This book was released on 2020-03-03 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital management plays a significant role in improved profitability of firms. Firms can achieve optimal management of working capital by making the trade-off between profitability and liquidity. The studies on working capital management generally states that for the improvement in profitability we should manage our working capital effectively and most of the studies recommended to have good amount of working capital in the organization. All the researches on this topic conclude that the companies should avoid under-investment in working capital if they want higher profit margins. With negative working capital there can be a danger of insolvency but it is not true forever. We have seen companies generating good profit with a negative working capital as well as companies not able to generate good profit even with having good amount of positive working capital. Hence, the question arises that having negative working capital is good for an organization or not and if a company is earning profit continuously with having negative working capital, can we say that it is a sign of managerial efficiency or there might be the chances of possible bankruptcy of the company? This book is a compilation of few selected studies on the working capital management practices of Indian corporate and in many cases the findings of these studies are not in line with the results of the previous researches in this area, which raises a question mark on the traditional styles of working capital management practices and also induces the finance managers to think whether there can be a new and better approach to working capital management practices.
Download or read book Impact of Working Capital Management on Profitability A Case Study of ACC Ltd written by CMA(Dr.) Ashok Panigrahi and published by . This book was released on 2013 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study empirically examines the relationship between working capital management and profitability of ACC Cement Company, the leading cement manufacturer of the country for assessing the impact of working capital management on profitability during the period 1999-2000 to 2009-10. The impact of working capital management on profitability is analyzed by computing Pearson's simple correlation coefficients, multiple correlation analysis and multiple regression analysis between Operating Profit and the selected independent variables affecting the working capital. The 't' test has been used to judge whether the computed correlation and regression coefficients are significant or not. Few variables show a strong and positive correlation with the profit whereas some others do not have. Hence, the result concludes that there is a moderate relationship between working capital management and firm's profitability. It can be said that there exists a relationship between the efficiency of working capital and the profitability, but the relationship is not statistically significant.
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 Working Capital Management a Case Study of Ghana Post written by Andrews Salakpi and published by LAP Lambert Academic Publishing. This book was released on 2013 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working Capital is the life blood of every business entity a firm is required to maintain a balance between liquidity and profitability while conducting its day to day operations. Liquidity is a condition to ensure that firms are able to meet its short-term obligations and its continued flow can be guaranteed from a profitable venture. To be effective working capital requires a clear specification of the objective to be achieved. Little attention has been paid to working capital management, despite the fact that many companies see such activities at the core of their profitability. This Research examines the implications of a corporation's working capital management in Ghana Post Company Limited.
Download or read book Impact of Negative Working Capital on Liquidity and Profitability written by CMA(Dr.) Ashok Panigrahi and published by . This book was released on 2014 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Theoretically, the ultimate objective of an effective working capital management policy is to enable a firm to strike a balance between the two core objectives of the firm, i.e. profitability and liquidity. But increasing profitability would tend to reduce firms' liquidity and too much attention on liquidity would tend to affect the profitability. No doubt, every firm tries to maximize the profitability so as to maximise the shareholder's wealth but increasing profits at the cost of liquidity might cause serious trouble to the firm and this problem might lead to financial insolvency as well. However excessive liquidity on one hand indicates the accumulation of idle funds that don't fetch any profits for the firm and on the contrary, insufficient liquidity might damage the firm's goodwill, deteriorate firm's credit ratings and that might lead the firm towards bankruptcy. A company unable to make profits might be termed as a sick company but, a company having no liquidity might cease to exist. This clearly indicates that every firm must maintain sufficient amount of working capital to preserve its liquidity. But when a company like Wal-Mart, is able to generate a good amount of profit and also able to maintain its liquidity and public image without any working capital in hand i.e. in a condition of negative working capital, can we say that the company is in the verge of bankruptcy or is it a sign of managerial efficiency? Same is the case with ACC Limited, which is the company of our study. In this paper an attempt is made to study the association between liquidity, profitability and risk of bankruptcy of ACC Ltd. for the period 2000-01 to 2009-10. We found that though the company was able to maintain the profitability because of its aggressive working capital policy, but its solvency was ultimately at a stake.
Download or read book Impact of Working Capital Management on the Profitability of Firms written by Safi Khan and published by . This book was released on 2017 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines relationship between measures of working capital management and corporate profitability. Working capital management is an important element of financial management for many firms as they make significant investment in working capital components. Applying fixed effect estimation model, we find a significant negative relation between firm's profitability and various components of the working capital management. These results suggest that managers can improve firm's profitability, and consequently, enhance firm value, through the efficient management of working capital components.
Download or read book Relationship of Working Capital with Liquidity Profitability and Solvency written by CMA(Dr.) Ashok Panigrahi and published by . This book was released on 2014 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Experts say that the goal of working capital management should be to enable a firm to maximize profits of its operations while meeting both short term debt and upcoming operational expenses, i.e. to preserve liquidity. But increasing profitability would tend to reduce firms' liquidity and too much attention on liquidity would tend to affect the profitability. No doubt, every firm tries to maximize the profitability by preserving the liquidity. However, increasing profits at the cost of liquidity might cause serious trouble to the firm and this problem might lead to financial insolvency as well. Thus an effective WCM would be needed to strike a balance between the two core objectives of the firm. It is essential that the firm's liquidity should be properly balanced. Because, excessive liquidity on one hand indicates the accumulation of idle funds that don't fetch any profits for the firm and on the other hand, insufficient liquidity might damage the firm's goodwill, deteriorate firm's credit standings and that might lead to forced liquidation of firm's assets. Afterwards problems like bankruptcy and insolvency might happen. To sum up, a company unable to make profits might be termed as a sick company but, a company having no liquidity might cease to exist. But when a company like Wal-Mart, is able to generate profit and maximise shareholder's wealth with negative working capital, can we say that the company is on the verge of bankruptcy or is it a sign of managerial efficiency? Same is the case with ACC Limited, which is the company of our study. This paper attempts to study the association of working capital with liquidity, profitability and risk of bankruptcy of ACC Ltd. for the period 2000-01 to 2009-10. The study found that even with having negative working capital in most of the times, the company was able to earn a good rate of return because of its aggressive working capital policy but its solvency was ultimately at a stake.
Download or read book Relationship Between Working Capital Management and Profitability written by Muhammad Hamid and published by . This book was released on 2017 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the relationship between working capital management and profitability. In this research we have selected a sample of 92 Pakistani firms of textile sector for a period from 2006 to 2014. This study investigates the effect of different variables on net operating profit namely, Average collection period, Average payment period, Investing turnover in days cash conversion cycle, leverage and size of firm. Correlation and regression analysis are used for analysis. This study found that working capital management has significant negative effect on profitability of Pakistani textile sector. There is positive relationship between size and profitability.
Download or read book Working Capital Management written by Vinod Kumar Bhalla and published by . This book was released on 2010 with total page 1030 pages. Available in PDF, EPUB and Kindle. Book excerpt:
