Working Capital and Capital Structure

2020 ◽  
pp. 61-74
Author(s):  
Nufazil Altaf ◽  
Farooq Ahmad Shah
Keyword(s):  
Capital Structure ◽  
Working Capital

EVALUATION OF THE FINANCIAL STABILITY OF THE INSURANCE ORGANIZATION

2020 ◽  
pp. 68-78
Author(s):  
Oleg Georgievich Blazhevich
Keyword(s):  
Capital Structure ◽  
Financial Stability ◽  
Load Level ◽  
Joint Stock Company ◽  
Insurance Company ◽  
Working Capital ◽  
Stock Company ◽  
Ability To Pay ◽  
Essential Component ◽  
Equity Ratio

The article studies the financial stability of a particular insurance organization. The financial stability of the insurance company is an essential component of its activities and characterizes the ability to pay off its obligations on time and in full. The analysis of financial stability is defined as an independent object of evaluation, which explores the structure of the formation and use of capital. To assess the financial stability of the insurance company, a set of indicators was formed, including the following ratios: level of equity, ratio of equity to liabilities, ratio of insurance premiums and insurance reserves, ratio of working capital and non-current capital, level of permanent capital, ratio of equity and insurance reserves, level of debt load, level of insurance reserves. The insurance public joint-stock company RESO-Garantia was chosen as the object of analysis. The analysis showed that the capital structure in the insurance company under consideration is not optimal. The company has a shortage of insurance reserves, which is offset by equity.

scholarly journals MODAL KERJA, SIZE, STRUKTUR MODAL DAN RETURN ON ASSET: STUDI EMPIRIS PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI

2021 ◽  
Vol 16 (2) ◽  
pp. 99
Author(s):  
Fransiskus Rian ◽  
Gendro Wiyono ◽  
Mujino Mujino
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Return On Assets ◽  
Equity Ratio

ABSTRACT The purpose of this study is to examine whether working capital variables, size, and capital structure affect the return on assets. The population in this study are manufacturing companies in various sub-sectors proposed in the Indonesia stock exchange in 2016-2018. The type of data used in this study is secondary data from the company's annual financial statements as a sample that is used and processed using SPSS 16.00. This research uses the classic assumption test and the data analysis method used is multiple linear regression analysis. The results of the study show how working capital (ratio using current ratio, accounts receivable turnover, and net working capital), size, and capital structure (tested using a debt to equity ratio) are considered to compare asset returns.Keywords: working capital, size, capital structure, return on assets ABSTRAK Tujuan dari penelitian ini adalah untuk menguji apakah variabel modal kerja, ukuran, dan struktur modal berpengaruh terhadap return on assets. Populasi dalam penelitian ini adalah perusahaan manufaktur di berbagai sub sektor yang diusulkan di Bursa Efek Indonesia tahun 2016-2018. Jenis data yang digunakan dalam penelitian ini adalah data sekunder berupa laporan keuangan tahunan perusahaan sebagai sampel yang digunakan dan diolah menggunakan SPSS 16.00. Penelitian ini menggunakan uji asumsi klasik dan metode analisis data yang digunakan adalah analisis regresi linier berganda. Hasil penelitian menunjukkan bagaimana modal kerja (rasio menggunakan rasio lancar, perputaran piutang, dan modal kerja bersih), ukuran, dan struktur modal (diuji menggunakan rasio utang terhadap ekuitas) dipertimbangkan untuk membandingkan pengembalian aset.Kata kunci: modal kerja, ukuran, struktur modal, return on assets

scholarly journals The Time Value of Money: A Clarifying and Simplifying Approach

2004 ◽  
Vol 1 (7) ◽  
Author(s):  
Norman D. Gardner
Keyword(s):  
Capital Structure ◽  
Business Students ◽  
Capital Budgeting ◽  
Working Capital ◽  
Working Capital Management ◽  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money ◽  
Real Assets ◽  
Multiple Step

The concept of time value of money is critical for business students, financial managers, and anyone who deals with money.  Financial managers must be able to employ TVM concepts competently in order to value both financial and real assets as they make decisions regarding capital budgeting, capital structure, and working capital management. Therefore business students must come to understand and apply correctly time value of money concepts.   This brief note suggests a clarification and a simplification of the pedagogy of TVM, which will result in greater understanding for the student.  These suggestions include redefining the variable "n" in two of the TVM equations; dispensing with the pointless and purely semantic discussion of whether payments occur "at the beginning" or "at the end" of each period; and emphasizing the use of multiple-step problems.     

Working-Capital and Capital Structure

2019 ◽  
Author(s):  
Mark Jeffrey Flannery ◽  
Özde Öztekin
Keyword(s):  
Capital Structure ◽  
Working Capital

scholarly journals ANALYSIS OF CAPITAL STRUCTURE AND WORKING CAPITAL IN PHARMACEUTICAL RETAIL COMPANIES

2019 ◽  
Vol 3 (1) ◽  
pp. 30-42
Author(s):  
Pamian Siregar ◽  
Sri Hartoyo ◽  
Hendro Sasonko
Keyword(s):  
Capital Structure ◽  
Working Capital

scholarly journals The Effect of Solvency, Profitability, and Working Capital on Firm Value: Case Studies on Industrial Companies in IDX 2015-2019

2020 ◽  
Vol 2 (3) ◽  
pp. 356-363
Author(s):  
Andini Nurwulandari
Keyword(s):  
Capital Structure ◽  
Financial Reporting ◽  
Capital Market ◽  
Firm Value ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Working Capital ◽  
Industrial Companies ◽  
Sampling Process

The publication of the financial statements (issuers) of the company is a time waiting for investors in the capital market, as investors will find out the progress of issuance, as a consideration for purchasing or selling their own shares, when publishing these financial reporting statements. This research uses quantitative techniques with descriptive interpretation. Data sources include company-owned financial data reports collected from the IDX and published online, as well as conducting library analysis by collecting data from the writing of related books and journals. The type of data used in the study is secondary data from 2015-2019 which was collected through a purposive sampling process. Statistical Descriptive Analysis and Mulicollinearity Test. From this research, it can be seen that the rate of working capital turnover, solvency and capital structure affect firm value, while profitability does not affect firm value.

scholarly journals Analisis Strategi Bisnis NPV, IRR, PI dan DPB pada Golden Restaurant Jakarta

2011 ◽  
Vol 2 (1) ◽  
pp. 274
Author(s):  
Kriswanto Kriswanto
Keyword(s):  
Economic Growth ◽  
Capital Structure ◽  
Return On Investment ◽  
Business Performance ◽  
Business Strategies ◽  
Economic Conditions ◽  
Working Capital ◽  
Strategy Formulation ◽  
Conducting Research ◽  
Breakeven Point

Golden Restaurant is located in Senayan, South Jakarta. Because of intense competition and a lack of good economic growth in Indonesia, the restaurant sales dropped sharply and having some problems in operation. The measures is to do effective business strategies to improve business performance by conducting research, create a budget to analyze and predict the financial performance, and formulate an effective working capital structure. Formulation of the problem discussed is NPV and IRR of restaurant sales for the feasibility of an investment, securities of the PI and IBA restaurant on the return on investment and analysis NPV, IRR, PI and IBA on strategy formulation restaurant. From the analysis of simple direct study expected an increase in sales to 90% per year and provide a significant positive NPV and IRR of almost 20% which is higher than the original expectation of 15% and reach breakeven point within 4 to 7 years. From the results of this analysis also shows the business is sensitive to increased sales, operating expenses and cost of sales. In addition to inflation and economic conditions affect the performance of sensitive business. 

scholarly journals Exploring the Relationship between Working Capital Management, Profitability and Capital Structure

2017 ◽  
Vol 2 (1) ◽  
pp. 38-45
Author(s):  
Abdalla Geth Abdussalam ◽  
Mohd Ridzuan Darun
Keyword(s):  
Capital Structure ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Cash Flows ◽  
Jel Classification ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Main Component ◽  
The Relationship

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 Keywords: Working Capital Management; Capital Structure; Profitability; JEL Classification: O16, M41.

scholarly journals The Financial Sustainability of Consumer Cooperation Enterprises of Ukraine in the System of Management of its Financial Resources

2021 ◽  
Vol 3 (518) ◽  
pp. 162-170
Author(s):  
I. R. Сhuy ◽  
◽  
T. Y. Andreikiv ◽  
I. Y. Mutyan ◽  
◽  
...  
Keyword(s):  
Capital Structure ◽  
Economic Crisis ◽  
Cash Flows ◽  
Optimal Combination ◽  
Financial Resources ◽  
Financial Sustainability ◽  
Working Capital ◽  
Short Term ◽  
Financial Independence

The article is aimed at examining the essence of financial sustainability and financial reliability of consumer cooperation enterprises in Ukraine. The structure, sources of formation, directions of use and efficiency of use of financial resources in consumer cooperation are considered. To study the coefficients of financial sustainability, the division of capital by sources of formation and terms of use is provided. To assess long-term financial sustainability, the following indicators are proposed: working capital level; coefficients of financial independence, long-term financial independence, provision of own circulating capital; level of financial reliability. In the process of analyzing the capital structure of Ukrainian enterprises in general and consumer cooperation in particular, is identified: higher financial sustainability of enterprises and organizations of consumer cooperation; lower dependence on short-term loans and other funds attracted for the short term; higher level of working capital and profitability of activities, despite the financial and economic crisis of 2014-2015. Prospects for further research in this direction are to determine the levels and indicators of financial equilibrium of enterprises, in particular, the balance of positive and negative cash flows by volume, and the optimal combination of the levels of both profitability and risk.

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