Working Capital Management and Profitability : Evidence from Jordanian Mining and Extraction Industry Sector = إدارة رأس المال العامل والربحية : دليل ميداني من قطاع الصناعات التعدينية والاستخراجية في الأردن

2019 ◽  
Vol 27 (1) ◽  
pp. 42-60
Author(s):  
Al-Naif , Khaled Lafi ◽  
Al Shra'ah , Ata Elayan M.
Keyword(s):  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Industry Sector

scholarly journals Decision-Making on Working Capital Management, Based on Industry Differences

2019 ◽  
Vol 6 (2) ◽  
pp. 99-110
Author(s):  
Haritini Tsangari
Keyword(s):  
Decision Making ◽  
Consumer Goods ◽  
Optimal Level ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Industry Sector ◽  
Negative Effect ◽  
Level Of Significance

The effect of working capital components on profitability has conflicting empirical evidence, which is mostly data-driven. This paper aims to provide additional insight to this end, especially focusing on the neglected aspect of industry differentiation. The analysis implements a panel regression methodology on a dataset of 300 observations from firms in Cyprus, adjusting for control variables and considering industry differences. Overall, the present study illustrates that industry differences warrant in-depth examination for decision-making regarding working capital management policies. The findings show that the cash conversion cycle and its components have an effect on profitability, but the sign and level of significance vary according to the industry sector: results in the merged sample differ from the results by industry sector. For example, the cash conversion cycle has a positive effect on the consumer goods sector and a negative effect in the industrials sector. Additionally, management of creditors and suppliers is as important as the management of debtors, especially for consumer goods and industrials. Managers should aim for the optimal level of the working capital components, while simultaneously adjusting their strategies based on their industry sector, to boost firm profitability.

scholarly journals Analysis of Working Capital Management in Automotive Industry Sector Listed in Indonesia Stock Exchange

2021 ◽  
Vol 5 (1) ◽  
pp. 67-78
Author(s):  
Satriya Candra Bondan Prabowo ◽  
Rini Safitri
Keyword(s):  
Automotive Industry ◽  
Raw Materials ◽  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Industry Sector ◽  
Collection Period ◽  
A Company

This study aims to determine the analysis of working capital management in automotive industry sector listed on the Indonesia Stock Exchange. The object of the study consisted of 12 companies included in the automotive industry sector which were listed on the Indonesia Stock Exchange from 2014 to 2018. The results showed that the average collection period, inventory collection period, average payment period, and cash conversion cycle showed fluctuating results during the study period . The less time it takes for a company to collect receivables, the more liquid a company is. While the less time needed to convert raw materials into finished goods shows good results because the inventory will not be too long in the warehouse so that it will reduce costs. The average payment period is relative for each company. That's because every company has a debt agreement with a certain period. The less time needed by the company since the raw materials purchased are paid until the trade receivables from the sale are billed, the better for the company because the faster the time needed to turn money into goods and into cash back which will increase company profits.

Pengaruh Manajemen Modal Kerja Terhadap Profitabilitas Dan Risiko

Liquidity ◽  
2017 ◽  
Vol 6 (2) ◽  
pp. 95-102
Author(s):  
Sri Setia Ningsih
Keyword(s):  
T Test ◽  
Raw Material ◽  
Risk Level ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Trading Company ◽  
Regression Correlation ◽  
Descriptive Method

The purpose of this research is to know about working capital management applied, and its influence on profitability and risk. The research object is trading company moves in import & distribute chemical raw material. The research used analysis descriptive method, and the hypothesis was testing by simple linier regression, correlation, and determination. The result of the research shows that the effect of the implementation of working capital management on the change of the net working capital with tend to rise has a profitability level of 10.4% lower than the net working capital change with tend to go down of 46%, but instead on the risk level, the net working capital change with tend to rise has a risk level of 43.8% higher than the change in net working capital with tend to go down of 0.3%.Based on  t test, the result shows that the net working capital change influence  is not significant  to profitability and risk.

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