MEASURING THE IMPACT OF WORKING CAPITAL MANAGEMENT ON MANUFACTURING FIRMS PROFITABILITY

2019 ◽  
Vol 75 (5) ◽  
Author(s):  
Manjula Pattnaik
Keyword(s):  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
The Impact

scholarly journals Cash Conversion Cycle and Profitability, Evidence from Jordan

2019 ◽  
Vol 11 (2) ◽  
pp. 81
Author(s):  
Manar Moffadi Al-Mohareb
Keyword(s):  
Stock Exchange ◽  
Theoretical Aspect ◽  
Practical Aspect ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Amman Stock Exchange ◽  
The Impact

This study investigates the impact of working capital management and its components on profitability as a practical aspect, and how is compatible with the theoretical aspect. Besides, it examines other financial factors that may affect profitability by using a sample of Jordanian manufacturing firms listed in the Amman Stock Exchange for the period (2016-2018). Theoretically, manufacturing firms that have been studied have current assets over half of their total assets. Therefore, the working capital management role will be clearer on firm profitability.Practically, the results indicate that there is a significant relationship between the cash conversion cycle, which is considered as a proxy of working capital management, and profitability of the manufacturing firms. This provides an opportunity to create value for shareholders by decreasing receivable accounts and inventory, enhancing the profitability of the firms and reducing the collection period and by adopting effective credit policy.

scholarly journals The Impact of Corporate Governance on Working Capital Management (WCM) Efficiency: An Empirical Study of Manufacturing Firms of Pakistan

2019 ◽  
Vol IV (I) ◽  
pp. 140-149
Author(s):  
Ijlal Haider ◽  
Rais Khan ◽  
Muhammad Suhail
Keyword(s):  
Corporate Governance ◽  
Least Square Method ◽  
Manufacturing Firms ◽  
Least Square ◽  
Annual Reports ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Method Factors ◽  
The Impact

This article examines the impact of corporate governance of manufacturing firms of Pakistan considering Working Capital Management. A quantitative approach is used to analyze and test research hypothesis. Annual reports of forty-seven (47) companies are studied for a period of five years (2010-2014) from 100 index population with the total of 235 observations. Analysis on the obtained data were done using descriptive and regression analysis (Ordinary Least Square) method. Factors considered for corporate governance included Board Size, Board Meeting, and Board Committee Peshawar. Whereas, Working Capital Management was measured by account receivable (days), account inventory (days) and account payable (days). The results of study concludes that no significant impact of corporate governance was observed on Working Capital Management of manufacturing firms in Pakistan.

scholarly journals Working Capital Management and Corporate Profitability: Empirical Evidences from Nepalese Manufacturing Sector

2020 ◽  
Vol 23 (1) ◽  
pp. 137-152
Author(s):  
Pitri Raj Adhikari
Keyword(s):  
Data Analysis ◽  
Manufacturing Firms ◽  
Debt Ratio ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Conversion Period ◽  
The Impact

 This research paper attempts to fill the gap regarding the working capital management of manufacturing firms in context of Nepal by providing empirical evidence, and moreover, this study act as foundation for future research activity because there are very few working capital management research literatures in Nepalese context. The secondary data for data analysis are retrieved from annual reports of five manufacturing firms for eight-year period from 2010/11 to 2017/18. This study examines the impact of different working capital components, i.e. inventory conversion period, receivable conversion period, payable deferred period, cash conversion cycle, debt ratio and current ratio, with profitability of a manufacturing firm, where profitability is represented by return on equity, return on assets and net income. Statistical tools used for data analysis are Pearson’s correlation, ordinary least square regression and binary logistic regression. Such that, this study found that, inventory conversion period, payable deferral period and cash conversion cycle are inversely related with the profitability of manufacturing firms, whereas, receivable conversion period , debt ratio and current ratio are positively related.

Impact of Working Capital Management on Firm’s Profitability & Liquidity: An Empirical Study of TATA Motors Pvt. Ltd.

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Priyank Sharma
Keyword(s):  
Empirical Study ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
The Impact

Working capital is the funds required for the day to day working of any organization. So it should be managed in effective way to ensure profitability, solvency and survival of the company. Every organization has to manage its working capital in such a way that it does not result in blockage of funds and is able to cater the needs of the organization. In this paper I have tried to show the impact of the mismanagement of working capital on profitability and liquidity of the firm. For this purpose I have taken Tata Motors Pvt. Ltd for the s

scholarly journals The Impact of Working Capital Management on Firm Profitability: Empirical Evidence from the Polish Listed Firms

2020 ◽  
Vol 14 (1) ◽  
pp. 9
Author(s):  
Sorin Anton ◽  
Anca Afloarei Nucu
Keyword(s):  
Empirical Evidence ◽  
Ordinary Least Squares ◽  
Optimum Level ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Listed Firms ◽  
Firm Profitability ◽  
Break Even Point ◽  
The Impact

The purpose of this study is to investigate the relationship between working capital and firm profitability for a sample of 719 Polish listed firms over the period of 2007–2016. The scarcity of empirical evidence for emerging economies and the importance of working capital efficiency motivate the research on the working capital–financial performance relationship. The paper adopts a quantitative approach using different panel data techniques (ordinary least squares, fixed effects, and panel-corrected standard errors models). The empirical results report an inverted U-shape relationship between working capital level and firm profitability, meaning that working capital has a positive effect on the profitability of Polish firms to a break-even point (optimum level). After the break-even point, working capital starts to negatively affect firm profitability. The study brings theoretical and practical contributions. It extends and complements the literature on the field by highlighting new evidence on the non-linear interrelation between working capital management (WCM) and corporate performance in Poland. From the practitioners’ perspective, the results highlight the importance of WCM for firm profitability.

scholarly journals The Impact of Working Capital Management on Profitability: The Case of Small and Medium-Sized Export Companies in Tunisia

2011 ◽  
Vol 15 (3) ◽  
pp. 71-88 ◽  
Author(s):  
Meryem Bellouma
Keyword(s):  
Negative Relationship ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Random Effects Models ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Fixed And Random Effects ◽  
Financial Decision ◽  
The Impact

Working capital is an important component in the financial decision of the company. An optimal working capital management is reached through a trade off between profitability and liquidity. This study aims to provide empirical evidence about the effects of working capital management on the profitability of 386 Tunisian export SMEs observed from 2001 to 2008. The results of fixed and random effects models show a negative relationship between corporate profitability and the different working capital components. This reveals that Tunisian export SMEs should shorten their cash conversion cycle by reducing the number of days of accounts receivable and inventories to increase their profitability.

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