The Effect of Working Capital Management Policy on Foodservice Company Profitability

2019 ◽  
Vol 23 (2) ◽  
pp. 443-458
Author(s):  
Wonil Koo ◽  
Keyword(s):  
Management Policy ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management

scholarly journals Working Capital Management Policy: Female Top Managers and Firm Profitability

2019 ◽  
Vol 27 (3) ◽  
pp. 107-127
Author(s):  
Pambayun Kinasih Yekti Nastiti ◽  
Apriani Dorkas Rambu Atahau ◽  
Supramono Supramono
Keyword(s):  
Management Policy ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Top Managers ◽  
Firm Profitability

scholarly journals Effects of the COVID-19 Global Crisis on the Working Capital Management Policy: Evidence from Poland

2021 ◽  
Vol 14 (4) ◽  
pp. 169
Author(s):  
Grzegorz Zimon ◽  
Hossein Tarighi
Keyword(s):  
High Ratio ◽  
Management Policy ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Conservative Strategy ◽  
Accounts Receivable ◽  
Large Cities ◽  
Cash Conversion Cycle ◽  
Return On Sales

The paper aims to investigate the effects of the COVID-19 pandemic on working capital management policies among Polish small and medium-sized enterprises operating in Group Purchasing Organizations (GPOs). The results show that the firms adopted a moderate–conservative strategy for their working capital management. Moreover, the evidence confirms that the COVID-19 pandemic crisis did not change Working Capital Management (WCM) strategies significantly. The companies that have high financial security as a result of the high ratio of Liquidity, Quick, and cash conversion cycle (CCC) have tried to attract more new customers in the market by increasing the due date of accounts receivable so they can improve their sales performance, and also reduce the liabilities turnover to be able to work with more suppliers in the market. Moreover, among the various WCM strategies, the companies with a higher CCC ratio, along with those whose bulk of current assets consisted of accounts receivable and short-term investments, managed to have higher sales returns. Finally, our outcomes indicate that the firms operating in large cities have lower sales returns, meaning even Polish small and medium-sized enterprises’ ability within GPOs with the aid of the central unit can also get high return on sales (ROS) results.

scholarly journals Does Working Capital Management Affect Profitability of Ghanaian Manufacturing Firms?

2020 ◽  
Vol 23 (1) ◽  
pp. 1-18
Author(s):  
Kwadwo Boateng Prempeh ◽  
Godfred Peprah-Amankona
Keyword(s):  
Developing Economies ◽  
Stock Exchange ◽  
Optimal Level ◽  
Manufacturing Firms ◽  
Management Policy ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Dynamic Panel Regression ◽  
Ghana Stock Exchange

AbstractThis paper analyses the link between working capital management and profitability of firms in the context of developing economies. A balanced panel consisting of eleven (11) manufacturing firms listed on the Ghana Stock Exchange covering the period of 2011-2017 was used. The link between working capital management and profitability was examined using dynamic panel regression (Arellano-Bond Estimation) technique. The study revealed that there is a significant positive linear relationship between working capital management and firms’ profitability. The findings also reveal the existence of a concave quadratic relationship between working capital management and firms’ profitability. There is an optimal level at which working capital management maximises firm’s profitability, therefore, managers need to ensure that they operate within the limits of the optimal level by implementing an effective and efficient working capital management policy. The study concludes that, the practice of an aggressive working capital management policy maximises a firm’s profitability.

scholarly journals Working Capital Management Policy and The Financial Performance of Food and Beverages Companies in Nigeria

2018 ◽  
Vol 2 (2) ◽  
pp. 75
Author(s):  
Yahaya Yusuf ◽  
Mohammed Sani
Keyword(s):  
Raw Materials ◽  
Stock Exchange ◽  
Secondary Data ◽  
Management Policy ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Food And Beverages ◽  
Food And Beverage ◽  
The Relationship

This study is set to examine the relationship between working capital management policy and profitability of quoted food and beverages companies in Nigeria. The population comprises a sample of ten (10) food and beverage companies quoted on the Nigerian Stock Exchange. The study used secondary data for a period of ten (10) years (2005-2014) and was analyzed using descriptive and inferential statistics with the aid of Stata version 13. Two research hypotheses were formulated and tested. It was found that, there is no significant relationship between receivable collection period (RCP) policy and profitability of quoted food and beverage companies in Nigeria. However, it was recommended that the management should identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials and minimizes reordering cost and hence increases profitability. The management should reduce their RCP from 53 days on the average to at most 30 days by instituting adequate control and flexible credit policy.

scholarly journals The effect of working capital management and credit management policy on Jordanian banks’ financial performance

2022 ◽  
Vol 16 (4) ◽  
pp. 229-239
Author(s):  
Abdulnafea AL-Zararee ◽  
Nashat Ali Almasria ◽  
Qasim Ahmad Alawaqleh
Keyword(s):  
Financial Performance ◽  
Significant Relationship ◽  
Cash Transfer ◽  
Management Policy ◽  
Capital Management ◽  
Working Capital ◽  
Graduate Studies ◽  
Credit Management ◽  
Working Capital Management ◽  
The Impact

This study investigated the impact of Working Capital Management (WCM) and Credit Management Policy (CMP) on the Financial Performance (FP) of Jordanian banks (JB). The study data were obtained from 16 Jordanian banks listed on the Amman Stock Exchange (ASE) between 2017 and 2020. The study used panel data to investigate the relationship between the two independent variables, WCM and CMP, and the dependent variable FP; 64 financial reports to Jordanian banks were analyzed to measure this relationship. To test hypotheses, multiple regression was used. The study found a statistically significant relationship between WCM and FP, and the independent variable was able to explain 34.1% of the changes that occur in the dependent variable. In addition, the outcome approved that there is a statistically significant relationship between CMP and FP. Furthermore, CMP explained about 41.8% of changes in the dependent variable. The findings of this study indicate support for the banks’ performance; a bank may need to lengthen client credit terms, prolong the cash transfer cycle, and require a more extended payment period when judging on WCM. Acknowledgment The publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.

scholarly journals The Interaction of Financial Leverage and Firm's Operational Efficiency

2020 ◽  
Vol 10 (1) ◽  
pp. 235
Author(s):  
Martha Coleman ◽  
Justices Mark Baidoo
Keyword(s):  
Stock Exchange ◽  
Operational Efficiency ◽  
Management Policy ◽  
Cash Holding ◽  
Capital Management ◽  
Working Capital ◽  
Financial Leverage ◽  
Working Capital Management ◽  
S Curve ◽  
The Right

The study examines the effect of financial leverage on operational efficiency. This study used a panel data of 102 non-financial companies listed on Nigeria and Ghana stock exchange for the period 2012 – 2016. It was revealed that there is an S-curve relationship between financial leverage and working capital management and cash holding. Also there is a significant moderating effect on the relationship between internationalization and dividend payout. This implies that firms that are involved in international activities are highly concerned with having borrowing as part of their capital structure than solely operating with owners’ capital which might be the case of most domestic firms. Relationship between financial leverage and working capital management and cash holding is considered to be non-monotonic which gives management insight of choosing the right leverage management policy to achieve desired goal.

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