scholarly journals Effect of Working Capital Management Decisions on Financial Performance

2021 ◽  
Vol 10 (4) ◽  
pp. 127-140
Author(s):  
Charles Kiprotich Yegon ◽  
Willy Muturi ◽  
Oluoch Oluoch
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Warning Signal ◽  
Financial Statements ◽  
Recent Past ◽  
Management Decisions ◽  
Return On Assets ◽  
Financing Policy ◽  
Cash Conversion Cycle ◽  
Conversion Period

Collapse of companies in Kenya has been on the rise in the recent past. Far reaching endeavors to resuscitate these liquidating and ailing firms have generally been attributed on their corporate financial management decisions.  Multinationals and KTDA managed tea firms in Kenya have been performing poorly in the recent past where audited financial statements and reports revealed a warning signal on its financial performance. Specific objectives of the study were to determine the effect of the accounts receivables period, accounts payables period, inventory conversion period, cash conversion cycle, financing policy, investing policy and moderating effect of ownership structure on financial performance. The study illustrated that accounts receivables collection period is negatively related to return on assets (? = -0.1299, p=0.0160),  accounts payables payment period is negatively related to return on assets (? = -0.0843, p = 0.0070), inventory conversion period is negatively related to return on assets (?= -0.0623, p=0.0180), cash conversion cycle is negatively related to return on assets (? = -0.1107, p = 0.0030), financing policy is positively related to return on assets (? = 0.1589, p = 0.0000), investing policy is positively related to return on assets (? = 0.0291, p = 0.0000).

scholarly journals The Impact of Working Capital Management on Profitability: Evidence from the Listed Retail Stores in Botswana

2018 ◽  
Vol 4 (1) ◽  
pp. 85
Author(s):  
Sathyamoorthi C.R. ◽  
Mogotsinyana Mapharing ◽  
Popo Selinkie
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Retail Stores ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Conversion Period ◽  
The Impact

This study focused on the effect of working capital management on the profitability of the listed retail stores in Botswana Stock Exchange for the period 2012-2016. Financial statements of the listed Retail Stores were used as the main source of data. Return on Assets was used as the dependent variable to measure profitability and the components to measure working capital management comprised of Average Collection Period, Inventory Conversion Period, Average Payment Period, Cash Conversion Cycle, Debt, Current and Quick Ratios. Correlation analysis revealed that a few variables were significantly correlated with each other. Average Payment Period and Inventory Conversion Period were found to be positively and significantly correlated and Cash Conversion Cycle was significantly and positively correlated with Inventory Conversion Period.The regression results showed that only three variables out of the seven independent variables were statistically significant, namely Average Payment Period, Current Ratio and Quick Ratio. The remaining four variables were found to be statistically insignificant.  The above findings have implications for the management of the listed retail store in Botswana.

scholarly journals Analisis Modal Intelektual Dan Kinerja Keuangan Serta Pengaruhnya Terhadap Nilai Perusahaan

2019 ◽  
Author(s):  
Riski Wahyudi ◽  
Lidya Martha
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Firm Value ◽  
Stock Exchange ◽  
Value Added ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Book Value ◽  
Company Value

This study aims to examine the effect of intellectual capital and financial performance on the value of companies in manufacturing companies listed on the Indonesia Stock Exchange (IDX). The research population is all manufacturing companies listed on the Indonesia Stock Exchange for the period 2013 - 2017. This sample was selected using a purposive sampling method with sample criteria. Manufacturing is listed on the IDX during the end of 2017 period, Manufacturing is listed consecutively during the period 2013 - 2017, Manufacturing that uses Rupiah, Manufacturing that has complete financial statements for the period 2013 - 2017, Manufacturing that has financial data in accordance with the variables to be tested, namely Price to Book Value, Value Added Intellectual Coefficient, Return On Assets, and Manufacturing that does not has data outliers, and obtained a sample of 11 companies. The data source is the annual financial statements of manufacturing companies taken through the official website of the Indonesia Stock Exchange ( www.idx.co.id ). Testing uses panel data regression analysis with the Eviews Program tool. Intellectual capital is measured using Value Added Intellectual Coefficient (VAIC), while financial performance is measured by Return on Assets (ROA) and company value measured by Price to Book Value (PBV). The results showed that the variable intellectual capital had a negative and not significant effect on firm value, while financial performance had a positive and significant effect on firm value.

scholarly journals Government assistance to state-owned enterprises: a hindrance to financial performance

2020 ◽  
Vol 17 (2) ◽  
pp. 40-50
Author(s):  
Ferina Marimuthu
Keyword(s):  
South Africa ◽  
Financial Performance ◽  
Financial Management ◽  
Government Assistance ◽  
Return On Assets ◽  
The Public ◽  
Dummy Variable ◽  
Negative Effect ◽  
The Government ◽  
Government Bailouts

This study aimed to examine whether government financial assistance influences the financial performance of state-owned enterprises. Commercial state-owned enterprises in South Africa that are listed under the Public Financial Management Act during the post-apartheid era from 1995 to 2017 were sampled. Government guarantees were measured as a dummy variable, while financial performance was measured by accounting measure: return on assets (ROA). Endogeneity issues were addressed, and data analysis was performed on an unbalanced panel using the two-step system GMM. The empirical evidence indicated that support by the government in the form of guarantees and subsidies has a significant negative effect on the financial performance of state-owned enterprises. This is an indication that continued government bailouts to poor performing state-owned enterprises exacerbates their poor financial performance and encourages these enterprises to become too reliant on government assistance, burdening the national fiscus. AcknowledgmentsThe author gratefully acknowledges the National Research Foundation of South Africa for the research grant and Dr Farai Kwenda for his supervision during the study.

scholarly journals RELATIONSHIP BETWEEN CASH FLOW MANAGEMENT AND FINANCIAL PERFORMANCE OF COMPANIES LISTED ON THE TEHRAN STOCK EXCHANGE

2019 ◽  
Vol 1 (17) ◽  
pp. 27
Author(s):  
Majid Ramazani ◽  
Mahdi Salehi ◽  
Mahmoud Laridashtbayaz
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Stock Exchange ◽  
Return On Assets ◽  
Flow Management ◽  
Cash Flow Management ◽  
Firm Financial Performance ◽  
Cash Conversion Cycle ◽  
Multivariable Regression ◽  
The Relationship

Purpose–Cash is one of the most important assets to business firms. To evaluate a business firm, the competencies of a firm in creating and increasing the cash are of great importance for investors, creditors, and other beneficiaries. So, the main objective of the current study is to evaluate the relationship between cash flow management and firm financial performance in Iran. Design/methodology/approach – In the present study, using the data of 155 companies listed on the Tehran Stock Exchange during 2009-2016, panel data, and multivariable regression, we tried to analyze the relationship cash flow management and financial performance.  Findings –The results obtained indicated that there is a relationship between the decrease (increase) of cash conversion cycle and operational cash conversion cycle and the improvement (debilitation) of financial performance. Moreover, the pending period for collection of sales revenue, cash conversion cycle, and operational cash conversion cycle is the Granger Cause of return on assets. Originality/value – Since a few studies have been conducted on cash flow management in Iran, the current study has covered the topic in Iran..

scholarly journals KISRUH LAPORAN KEUANGAN : BAGAIMANAKAH KINERJA KEUANGAN PT GARUDA INDONESIA TBK?

2021 ◽  
Vol 5 (2) ◽  
pp. 46-52
Author(s):  
Listika Nuri ◽  
Sri Andriani
Keyword(s):  
Financial Performance ◽  
Stock Prices ◽  
Stock Price ◽  
Financial Statements ◽  
Return On Assets ◽  
Current Ratio ◽  
Airline Company

Garuda Indonesia Tbk is the best airline company in Indonesia. However, the chaos in Garuda Indonesia Tbk's financial statements that occurred in 2018 caused a decline in financial performance which was reflected in the company's stock price. This study was conducted to determine the financial performance of Garuda Indonesia Tbk seen from the effect of the liquidity ratio (current ratio) on the company's stock price with the profitability ratio (return on assets) as an intervening variable. The results showed that the liquidity ratio had an effect on Garuda Indonesia's stock price. However, the liquidity ratio does not affect the company's profitability. In addition, the profitability ratio also has no significant effect on stock prices. Finally, the profitability ratio is not able to mediate the effect of the liquidity ratio on the stock price of Garuda Indonesia Tbk.

scholarly journals THE EFFECT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE IN THE ASEAN TELECOMMUNICATIONS SECTOR

2021 ◽  
Vol 2 (1) ◽  
pp. 21-38
Author(s):  
Christandy Adriel
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Financial Statements ◽  
Relational Capital ◽  
Return On Assets ◽  
Telecommunication Sector ◽  
Independent Variables ◽  
Structural Capital ◽  
Negative Effect ◽  
Capital Efficiency

Telecommunication sector plays an important role in people’s life, but its service in ASEAN nations are not as good as other nations. Currently, ASEANs telecommunication sector of financial performance (FP) is on a poor level and needs to be improved. Intellectual capital (IC) can increase FP. Every IC's component affects the FP, and this was tested on this research to see which component of IC is good to be invested to increase company’s FP. Independent variables used on this research are Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE), and Capital Employed Efficiency (CEE). The dependent variable is Return on Assets (ROA). This research used pooling data method from financial statements of ASEAN telecommunication company in the period of 2011 to 2018. The number of samples which fulfills the criteria were 273 samples. SPSS 20th version was used to analyses the data. The results indicate that FP is affected positively and significantly by HCE and CEE. However, SCE has a negative effect on FP significantly, while RCE does not affect FP. Keywords: Intellectual Capital, Financial Performance, E-VAIC, ASEAN Telecommunication.

scholarly journals Working capital management and profitability: evidence from Indonesian manufacturing companies

2020 ◽  
Vol 3 (1) ◽  
pp. 36-46
Author(s):  
Irfan Aryawan ◽  
Astiwi Indriani
Keyword(s):  
Stock Exchange ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Conversion Period ◽  
Collection Period ◽  
The Relationship

The aims of this study is to analyze the relationship between working capital management and profitability (return on assets) as a dependent variable and cash conversion cycle (CCC), inventory conversion period (ICP), average collection period (ACP) and average payment period (APP) as independent variables with leverage, liquidity, and size as the controlling variables. The sample of this study are manufacturing companies in the Indonesian Stock Exchange 2013-2017. The analysis using OLS showed that the ACP has a negative and significant effect on ROA and the APP has a positive and significant effect on ROA, meanwhile CCC and ICP has a negative and insignificant effect on ROA.

scholarly journals ANALISIS PENGUKURAN KINERJA KEUANGAN PADA PEMERINTAH KOTA TOMOHON

2017 ◽  
Vol 12 (2) ◽  
Author(s):  
Christian D. Sumual ◽  
Lintje Kalangi ◽  
Natalia Y. T. Gerungai
Keyword(s):  
Performance Measurement ◽  
Financial Performance ◽  
Financial Management ◽  
Financial Statements ◽  
Financial Ratios ◽  
Efficiency Ratio ◽  
The Government

Information generated from financial statements will be useful if the information is understood and used by users in analyzing a report and management of local finances. For that we need to measure the financial performance of the government, how far the progress achieved by the government of Tomohon. The research was conducted in the financial management, revenue and assets of Tomohon. The data used is quantitative in the form of Budget Realization Report (LRA), the method used is quantitative to measure financial performance with Financial ratios. The results show that the financial performance of Tomohon is not good, where the financial performance in 2013-2016, for the effectiveness ratio is above 90% -100%. While the efficiency ratio and the independence ratio per year are not running well. Keywords: Influence of  financial performance measurement

scholarly journals Effect of Accounts Receivable Management on Financial Performance of Chartered Public Universities in Kenya

2021 ◽  
Vol 3 (1) ◽  
pp. 73-83
Author(s):  
George Okoth Owuor ◽  
Nickson Agusioma ◽  
Fredrick Wafula
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Public Universities ◽  
Target Population ◽  
Substantial Effect ◽  
Annual Reports ◽  
Survey Method ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Specific Objective

Accounts receivable refer to the payments expected by an organization in the foreseeable future. Accounts receivable management plays an integral part in the financial performance of higher learning institutions. With several public universities experiencing no or delayed payments from the respective receivable accounts, such institutions have been characterized with financial constraints, struggling to meet their immediate obligations. From reduced government capitation, lack of the module two students (Self-Sponsored), and students' non-compliance on fee payment policy, public universities in Kenya continue to experience poor financial performance due to inefficiency of their accounts receivable management. This study sought to examine the effect of accounts receivable management on the financial performance of chartered public universities in Kenya. The general and specific objective was to determine the effect of accounts receivable management on the financial performance of chartered public universities in Kenya. The study used the Cash Conversion Cycle (CCC) theory. Descriptive and inferential research designs were applied to analyze data. The target population was all the 31 chartered public universities in Kenya, and as such, the census survey method was adopted to collect data. Secondary panel data was extracted from the respective institutions’ audited annual reports for 2017, 2018, and 2019. The SPSS Version 25 was applied to analyze descriptive and inferential statistics. The study found that accounts receivable management had an indirect and significant effect on the financial performance of chartered public universities in Kenya (p= 0.000, β= -0.875). The study concluded that accounts receivable management has a substantial effect on the financial performance of chartered public universities in Kenya. The study recommended that in line with the IFRS 5 and IAS 1, respective university managements should develop optimal debts management frameworks to guide their financial management operations to realize sustainable financial performance both in the short and long runs.

scholarly journals ANALISIS RETURN ON ASSET (ROA), ECONOMIC VALUE ADDEAD (EVA) DAN MARKET VALUE ADDEAD (MVA) TERHADAP KINERJA KEUANGAN PERUSAHAAN PT. PERKEBUNAN NUSANTARA III (Persero)

2016 ◽  
Vol 3 (2) ◽  
Author(s):  
Budi Gunawan ◽  
Teguh Erawati
Keyword(s):  
Financial Performance ◽  
Economic Value ◽  
Market Value ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
Return On Assets ◽  
Purposive Sampling ◽  
Positive Economic ◽  
Time Period

The purpose of this study was to determine the financial performance. Plantation Nusantara III (Persero) in the period 2009 to 2012 based on ReturnOn Assets (ROA), Economic Value Addead (EVA) and Market Value Addead (MVA) this study used purposive sampling. sample in this study is PT. Plantation Nusantara III (Persero) and objects in this study are already consolidated financial statements from 2009 to 2012 based on the results of this study indicate financial performance Return on assets is positive, Economic Value Addead is positive despite a four-period only happened one time period that negative values that occurred in the period of 2012 and Market Value Addead is positive. Keywords: financial performance, Retrun On Assets (ROA), Economic Value Addead (EVA) and Market Value Addaed (MVA).

Sign in / Sign up

Export Citation Format

Share Document