scholarly journals Working capital management and profitability of manufacturing companies in Kosovo

2021 ◽  
Vol 26 (2) ◽  
pp. 277-294
Author(s):  
Amant Fejzullahu ◽  
Florije Govori
Keyword(s):  
Trade Credit ◽  
Pearson Correlation ◽  
Manufacturing Companies ◽  
Regression Analyses ◽  
Working Capital ◽  
Return On Assets ◽  
Net Return ◽  
Cash Conversion Cycle ◽  
Operating Profit ◽  
Negative Effect

This article aims to demonstrate the profitability of the manufacturing companies in Kosovo impacted by the managing practices in the working capital. We use multiple regression analyses to estimate the effect of working capital indicators on profit. The Pearson correlation is used to calculate whether the variables are positively or negatively correlated and to what extent. The sample includes thirty-six manufacturing companies for the period 2012-2013. The data show that the increase in cash conversion cycle (CCC) and extension in the receivables term positively influenced operating profit and net return on assets. On the contrary, the increase in payables days had a negative effect on the operating profit and the net return on assets. The rise in inventory days led to increased profit. Therefore, the companies' competitiveness is maintained mainly by extending trade credit terms to their customers and keeping the cash engaged longer in operating activities.

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 Pengaruh Manajemen Modal Kerja terhadap Gross Operating Profit Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2014-2018

2021 ◽  
Vol 5 (3) ◽  
pp. 307
Author(s):  
Tommy Tommy
Keyword(s):  
Stock Exchange ◽  
Debt Ratio ◽  
Sales Growth ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Working Capital Management ◽  
Verification Method ◽  
Cash Conversion Cycle ◽  
Operating Profit ◽  
Research Period

The purpose of this study was to analyze the Effect of Working Capital Management on Gross Operating Profit in Manufacturing Companies in the Indonesia Stock Exchange in 2014-2018. This study uses a quantitative approach with an associative method to determine whether there is an influence from account receivable period, account payable period, account inventory period, cash conversion cycle to gross operating profit with financial debt ratio and sales growth as proxies and verification method that is testing the hypotheses perform based on data. This study uses a sample of 33 manufacturing companies on the stock exchange as panel data. The results of this study indicate that partially and simultaneously the account receivable period, account inventory period, account inventory period, cash conversion cycle with financial debt ratio and sales growth as proxies has a positive and significant effect on gross operating profit on manufacturing companies listed on the Indonesia Stock Exchange during the 2014-2018 research period. Tujuan penelitian ini adalah untuk menganalisis Pengaruh Manajemen Modal Kerja Terhadap Gross Operating Profit pada Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2014-2018. Penelitian ini menggunakan pendekatan kuantitatif dengan metode asosiatif untuk mengetahui ada tidaknya pengaruh dari account receivable period, account payable period, account inventory period, cash conversion cycle terhadap gross operating profit dengan proksi finansial debt ratio dan sales growth dan menggunakan metode verifikatif yaitu menguji kinerja hipotesa berdasarkan data. Penelitian ini menggunakan sampel 33 perusahaan manufaktur di bursa efek sebagai data panel. Hasil penelitian ini menunjukkan secara parsial dan simultan account receivable period, account inventory period, account inventory period, cash conversion cycle dengan proksi financial debt ratio dan sales growth berpengaruh positif dan signifikan terhadap gross operating profit pada perusahaan manufaktur yang tercatat di Bursa Efek Indonesia selama periode penelitian 2014-2018. 

scholarly journals THE EFFECTS OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF NIGERIAN MANUFACTURING FIRMS

2013 ◽  
Vol 14 (3) ◽  
pp. 520-534 ◽  
Author(s):  
Omo Aregbeyen
Keyword(s):  
Stock Exchange ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Operating Income ◽  
Cash Conversion Cycle ◽  
Operating Profit ◽  
Inventory Turnover

The efficiency of working capital management (WCM) has implications for firms’profitability. This paper empirically investigates the effects of WCM on the profitability of a sample of 48 large manufacturing firms quoted on the Nigerian Stock Exchange (NSE) for the period 1993 to 2005. It is aimed at filling the gaps in a previous study and contribute to expanding and enriching the literature particularly on Nigeria and at large. The analysis examined the responses of the firms’ profitability to WCM and a number of augmenting factors. Profitability was alternatively measured by gross operating profit (GOI), net operating income (NOI) and return on assets (ROA). Likewise, WCM was measured by the average collection period (ACP), average pay period (APP), inventory turnover days (ITID) and comprehensively by the cash conversion cycle (CCC). The results indicate that the firms’ have been inefficient with WCM and caused significant reductions in profitability. The paper concludes that improving the efficiency of WCM is essential and recommends that manufacturing firms in Nigeria should shorten the ACP, APP, ITID and reduce their CCCs.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PROFITABILITAS PERUSAHAAN MANUFAKTUR INDEPENDEN DI KAWASAN ASIA DAN APLIKASINYA DALAM MENENTUKAN PEMBANDING KEWAJARAN DAN KEWAJARAN USAHA

INFO ARTHA ◽  
2017 ◽  
Vol 3 ◽  
pp. 154-169
Author(s):  
Ni Luh Rian Dewi ◽  
Nur Aisyah Kustiani
Keyword(s):  
Transfer Pricing ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Return On Assets ◽  
Determinant Factors ◽  
Operating Profit ◽  
Fixed Assets ◽  
Dependent Variables ◽  
Tax Audit ◽  
Transaction Tax

In the tax audit on companies which involves transfer pricing in their transaction, tax auditor must determine benchmark companies to determine the arms length principle to be met by the companies. This study aims to analyze determinant factors of the profitability of independent manufacturing companies in Asia. Determinant factors of profitability can be used to determine the appropriate comparison companies. The study used two models with Plust net cost margin and return on assets as dependent variables of each model. Whereas, the independent variables used in this study are the ratio of operating revenue / net sales; operating profit; number of employees; payroll; total assets; tangible fixed assets; net working capital, cash and cash equivalent; other assets; geography; and industry. The results show that operating profit; net working capital; cash and cash equivalent and geography influence significantly and have been tested to determine comparator companies in determining the arms length principle. 

PENGARUH CASH CONVERSION CYCLE DAN WORKING CAPITAL TURNOVER TERHADAP RETURN ON ASSET PADA INDUSTRI BARANG KONSUMSI YANG TERDAFTAR DI BURSA EFEK INDONESIA

2015 ◽  
Vol 5 (2) ◽  
pp. 50
Author(s):  
Mohammad Herli ◽  
Hafidhah ,
Keyword(s):  
Consumer Goods ◽  
Stock Exchange ◽  
Quantitative Approach ◽  
Working Capital ◽  
Return On Assets ◽  
Cash Conversion Cycle ◽  
Consumer Goods Industry

This study aimed to examine the effect of the Cash Conversion Cycle and Working Capital Turnover on Return on Assets At the Consumer Goods Industry Listed in Indonesia Stock Exchange (IDX). The method used in this research is the quantitative approach. Results showed variable cash conversion cycle (CCC) and working capital turnover (WCT) simultaneously have a significant effect on profitability (Return on Total Assets). Variabel cash conversion cycle (CCC) partially not have a significant impact on profitability (Return on Total Assets) but variable working capital turnover (WCT) partially have a significant impact on profitability (Return on Total Assets) consumer goods industry issuers listed on the Indonesia Stock Exchange during the period 2010-2014. Keyword : Cash Conversion Cycle, Working Capital Turnover, Return on Assets

scholarly journals PENGARUH WORKING CAPITAL TURNOVER (WCT), CURRENT RATIO (CR), DAN TOTAL ASSETS TURNOVER (TATO) TERHADAP PROFITABILITAS

2021 ◽  
Vol 8 (1) ◽  
pp. 1-8
Author(s):  
Melia Trie Utami ◽  
Gusganda Suria Manda
Keyword(s):  
Research Method ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Coefficient Of Determination ◽  
Working Capital ◽  
Return On Assets ◽  
Current Ratio ◽  
Negative Effect ◽  
Positive Effect

The purpose of this study was to examine and analyze the effect of Working Capital Turnover (WCT), Current Ratio (CR), and Total Assets Turnover (TATO) on Profitability with the Return On Assets (ROA) proxy on cigarette sub sector companies listed on the Indonesia Stock Exchange (IDX) quarterly in 2014-2019, both partially and simultaneously. The research method used is descriptive verification with quantitative approaches. The sample in this study used purposive sampling. The statistical method used is the method of multiple linear regression analysis. The results showed that the Working Capital Turnover (WCT), Current Ratio (CR), and Total Assets Turnover (TATO) simultaneously had a significant effect on the Return on Assets (ROA) profitability. Partially Working Capital Turnover (WCT) has a significant negative effect on Return on Assets (ROA) profitability, Current Ratio (CR) has no effect on Return on Assets (ROA) Profitability, and Total Assets Turnover (TATO) has a significant positive effect on Return on Profitability Assets (ROA). The coefficient of determination obtained by 0.429 means that only 42.9% Profitability Return on Assets (ROA) is influenced by Working Capital Turnover (WCT), Current Ratio (CR), and Total Assets Turnover (TATO) and the rest 57.1 % is influenced by other variables.

Effect of Working Capital on Profitability of Selected Quoted Firms in Nigeria

2012 ◽  
Vol 13 (3) ◽  
pp. 367-381 ◽  
Author(s):  
Olayinka Olufisayo Akinlo
Keyword(s):  
Trade Credit ◽  
Capital Management ◽  
Working Capital ◽  
Credit Policy ◽  
Inventory Policy ◽  
Working Capital Management ◽  
Accounts Receivable ◽  
Financial Firms ◽  
Cash Conversion Cycle ◽  
Accounts Payable

The article examines the relation between working capital management and profitability for a sample of 66 Nigerian non-financial firms for the period 1997–2007. Trade credit policy and inventory policy are measured by number of days accounts receivable, accounts payable and inventories; and the cash conversion cycle (CCC) is used as a comprehensive measure of working capital management. The results suggest that firm’s profitability is reduced by lengthening the number of days accounts receivable, number of days of inventory and number of days accounts payable. The result shows that shortening the CCC improves the profitability of the firms.

scholarly journals Analisis Pengaruh Portofolio Kredit Terhadap Kualitas Kredit dan Profitabilitas pada BPR Konvensional di Riau

2017 ◽  
Vol 3 (1) ◽  
pp. 1-11
Author(s):  
Dian Febrina
Keyword(s):  
Path Analysis ◽  
Annual Report ◽  
Positive Impact ◽  
Working Capital ◽  
Return On Assets ◽  
Credit Quality ◽  
Significant Negative Effect ◽  
Negative Effect ◽  
Credit Portfolio ◽  
Positive Effect

Abstract: The present research was conducted at Riau Province. The purpose of this research is to influence of credit portfolio to non perfoming loan (NPL) and profitability (ROA) in Bank Perkreditan Rakyat (BPR) Convensional in Riau. The population of this research is a Bank Perkreditan Rakyat Convensional from annual report are listed in Perbarindo Riau during 2009-2013 with the number of saturation samples are 33 BPR in Riau. This research apply on using portofolio credit based on a type of used that is working capital loan, investment loan and consumer loan as an exogenous variable, credit quality (NPL) as an intervening variable and profitability (ROA) as a endogenous variable. The data were analyzed using path analysis. The result of this study indicate that working capital loan through credit quality indirectly significant negative effect on profitability, but the working capital loan directly positive effect on profitability. While investmen loan and consumer loan positive impact on profitability either directly or indirectly throught credit quality. Finally, credit quality and negative significant effect on profitability. Keywords: credit portfolio, working capital loan, investment loan, consumer loan, credit quality, non performing loan (NPL), profitability, return on assets (ROA) and path analysis.

scholarly journals PENGARUH KOMPREHENSIF ATAS STRATEGI MODAL KERJA MELALUI RASIO PERDAGANGAN (Merchandising Ratio)

2017 ◽  
Vol 1 (1) ◽  
pp. 35
Author(s):  
Wenty , ◽  
Murtanto ,
Keyword(s):  
Inventory Management ◽  
Descriptive Analysis ◽  
Financial Statement ◽  
Sales Growth ◽  
Analysis Method ◽  
Working Capital ◽  
Return On Assets ◽  
Cash Conversion Cycle ◽  
Correlation Analysis Method

<p class="Style4">The implementation of working capital strategy of successful compa­nies could be observed from its cash conversion cycle. Effective working capi­tal strategy will lead to an increasing to an increase of a firm's value. This thesis has two objectives : Firstly, it analyse the interrelationships between the merchandising ratio with the return on assets ratio and the long-term debt to total assets ratio. These two ratios have the ability to check the effectiveness of a firm's working capital management. Secondly, it analyse the effective of the firm's management of cash, receivable, inventory and payables.</p><p class="Style4">The writer is using the descriptive analysis method which describe the retail firm's working capital strategy from the financial statement information, and the correlation analysis method that detects the correlation between the merchandising ratio and the traditional ratio.</p><p>The analysis shows that PT Hero Supermarket, PT Matahari Putra Prima and PT Ma Retailindo have good and <em>effective </em>working capital strategy. The merchandising ratio has positive correlation with the return on assets ratio and negative correlation with the debt to total assets ratio.</p><p class="Style1">The purpose of this research is to prove the effectiveness in using the cash conversion cycle strategy. PT Hero Supermarket, PT Matahari Putra Prima and PT Alfa Retailindo should emphasize on their inventory management so that the percentage of sales growth is accompled by an equivalent increase in its inventory. Apart from that, these compa Iles should focus on their payables management by maximize the debt benefit.</p><p class="Style1">Crucial terms: working capital strategy, merchandising ratio and cash conversion cycle.</p>

scholarly journals Analisis Determinan Profitabilitas Perusahaan Manufaktur pada 2014-2019

2021 ◽  
Vol 10 (2) ◽  
pp. 291
Author(s):  
Audi Gracia Wasisto ◽  
Nora Amelda Rizal
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Future Research ◽  
Significant Positive Effect ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Panel Data Regression ◽  
Negative Effect ◽  
Operational Activities ◽  
Positive Effect

Profitability is very important for a company to carry out their operational activities because in general they cannot not survive without the ability to generate profits. This study aims to determine the effect of working capital, firm size, company efficiency, liquidity, and leverage on profitability in manufacturing companies listed in the Indonesia Stock Exchange 2014-2019. This research used purposive sampling with 108 sample data. The data were analyzed using panel data regression using eviews 11 software. It showes that working capital, firm size, company efficiency, liquidity, and leverage simultaneously have a significant effect on profitability. Partially, working capital has a significant positive effect on profitability. Firm size has no significant positive effect on profitability (ROE), but it has a significant positive effect on profitability (EPS). Company efficiency has a significant positive effect on profitability. Liquidity has no significant positive effect on profitability (ROE) and has no negative effect on profitability (EPS). Leverage DER and LDAR have no significant negative effect on profitability. Therefore, this research can be a reference for future research to analyze the determininant of profitability.

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