scholarly journals Profitability and Working Capital Management Nexus: Evidence from Food & Personal Care Products Sector Firms Listed on Pakistan Stock Exchange

2021 ◽  
Vol 4 (1) ◽  
pp. 55-67
Author(s):  
DR. MUMTAZ HUSSAIN SHAH ◽  
FAYYAZ KHAN
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Pearson Correlation ◽  
Research Work ◽  
Secondary Data ◽  
Personal Care ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Personal Care Product

Working capital management (WCM) usually have an essential role to play in a firm’s overall performance, especially those of manufacturing sector. The key aim of the current research work is to find the empirical association amid profitability and working capital management of the Food & Personal Care Product sector Pakistani firms. Eight companies are selected randomly as a sample from the firms listed on Pakistan Stock Exchange. Secondary data for six years, that is, 2010 - 2016 is gathered from the financial reports of these companies and evaluated through Pearson correlation coefficient and regression analysis techniques, using STATA software. The results prove that Return on Assets (ROA) is negatively correlated with Average Collection Period (ACP) and positively correlated with Inventory Turnover in Days (ITID), Average Payment Period (APP), Current Ratio (CR) and Sales Growth (SG). All the relationships are significant except ITID and SG ones.

A Study on Working capital Management in Hindustan Petroleum Corporation Limited

2021 ◽  
pp. 164-168
Author(s):  
Sruthi B ◽  
Rashmi R
Keyword(s):  
Annual Report ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Effective Management ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
The Past ◽  
The Relationship

Working capital management is important for every organization as it refers to the effective management of current assets and current liabilities. The aim is to make sure that the firm is capable to continue its operations and it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses. In this paper, an attempt has been made to study the management of working capital in Hindustan Petroleum Corporation Limited, a leading public sector enterprise in India over a period of 10 years (That is from 2009-10 to 2018-19). The paper also attempts to study the components of working capital and analyze the relationship between liquidity and profitability of HPCL. The study is based on secondary data collected from annual report of HPCL for the past 10 years, Pearson correlation and regression model are used for this purpose. From the study it is found that there is a significant relationship between liquidity and profitability.

scholarly journals Working Capital Management (WCM) and Firm Performance in Emerging Markets: A Case of Bangladesh

2021 ◽  
Vol 10 (1) ◽  
pp. 36
Author(s):  
Rafiqul Bhuyan ◽  
Mohammad Sogir Hossain Khandoker ◽  
Noshin Tasneem ◽  
Mahjuja Taznin
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Total Asset ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Current Asset ◽  
The Impact

We examine the impact of efficient working capital management on market value and profitability. Using secondary data on selected firms from Dhaka Stock Exchange we explore the effects of various working capital components (i.e. cash conversion cycle (CCC), current ratio (CR), current asset to total asset ratio (CATAR), current liabilities to total asset ratio (CLTAR), debt to asset ratio (DTAR), siz,e and growth) to the firm’s performance by looking firm’s value i.e. Tobin’s Q (TQ) and profitability i.e. return on asset (ROA) and return on invested capital (ROIC). Our results show that, for both food and overall manufacturing sectors, there is a significant association between working capital variables and firm’s value & return on assets, but an insignificant association with return on invested capital.

scholarly journals The Effect of Working Capital Management on Corporate Profitability: Evidence from Nigerian Food Product Firms

2015 ◽  
Vol 1 (2) ◽  
pp. 55 ◽  
Author(s):  
Sabo Muhammad ◽  
Rabi’U Saminu Jibril ◽  
Usman Sani K. Wambai ◽  
Fatima Bello Ibrahim ◽  
Tjjani Habibu Ahmad
Keyword(s):  
Stock Exchange ◽  
Negative Relationship ◽  
Secondary Data ◽  
Food Product ◽  
Annual Reports ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Short Term Investment ◽  
The Impact

The paper examines the impact of working capital management on corporate profitability through the periods of 2008 to 2012. The total of seven firms listed on the floor of the Nigerian Stock Exchange was studied, using secondary data generated from annual reports and accounts of the sampled companies and the Nigerian Stock Exchange Fact book. The data were analyzed by means of descriptive statistics and GLS regression analysis using STATA 11. The study finds a positive relationship among Average Collection Period (ACP), Current Ratio (CR) and the size of the firm (LOGSIZE) with Profitability and a negative relationship with Inventory Turnover Period (ITP), Average Payment Period (APP). The paper therefore recommends that cash collected should be re-invested into short-term investment to generate profits and fund left idle in the cash or excessive liquidity is costly and do not lead to profitability.

scholarly journals Working Capital Management Antecedants Impact on Firm Specific Factors: A Ten Year Review of Karachi Stock Exchange

2015 ◽  
Vol 53 ◽  
pp. 107-111
Author(s):  
Sajid Iqbal
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Sample Period ◽  
Regression Analyses ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Proxy Variable ◽  
Specific Factors ◽  
Relationship Of

The study aims of investigate relationship of working capital antecedents and profitability of the company. Seven variables are taken as proxy variable to measure working capital and its management. Population of the study is based on Karachi stock exchange listed companies. The sample of study is manufacturing sector of Pakistan. Thus, sample period contains on the ten years from (2005-2014). All variables have sound reliability and data is normally distributed. Therefore, correlation and regression analyses are applied. Hence, study revealed significant relationship of working capital management and profitability.

scholarly journals WORKING CAPITAL MANAGEMENT AMONG LISTED COMPANIES OF PAKISTAN

2017 ◽  
Vol 5 (2) ◽  
pp. 80-91
Author(s):  
Waqar Ul-Hassan ◽  
Mohsin Zubair ◽  
Zeeshan Hasnain ◽  
Shahbaz Hussain
Keyword(s):  
Stock Exchange ◽  
Pearson Correlation ◽  
Sample Selection ◽  
Selection Criterion ◽  
Listed Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Operating Income ◽  
Cash Conversion Cycle

The study aims to investigate the strength of working capital management for measuring the financial performance of listed stocks. The study incorporates descriptive statistics, Pearson correlation, and multiple regression models for interpretation and execution of data. Five years (2006-11) panel data of 125 listed companies of Pakistan stock exchange (PSX) is selected in accordance to sample selection criterion. Results of regression analysis supported an inverse relationship between firm`s profitability and working capital management. Return on asset and Gross operation income are taken as indicators of profitability. Inventory turnover in days, Average age of A/R, Average payable period and Cash conversion cycle are considered as independent variables to measure firm’s profitability. Firm size, Sales growth, and financial debt ratio are favored as control variables. Overall Return on asset models indicated poor values of R-square`s and Gross operating income models showed robustness.

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 Impact of Working Capital Management on Profitability and Value of Firm: A Study of Manufacturing Sector of Pakistan

2018 ◽  
Vol 14 (2) ◽  
pp. 1-12
Author(s):  
Munawar Shabbir ◽  
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Generalized Method Of Moments ◽  
Manufacturing Firms ◽  
Raw Material ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Value Of Firm

Manufacturing is third largest sector of Pakistan's economy. The manufacturing firms convert raw material to finished goods that is useful for people. The whole process (raw material to end product) requires huge amount of working capital. Any anomaly in working capital management directly effects on performance, profitability and value of firm. The present study explores impact of working capital management on profitability as well as on value of firm. The study collects random sample of 30 manufacturing firms registered on Pakistan Stock Exchange for twelve years (2005 to 2016). The regression models were estimated using Generalized Method of Moments. The results showed profitability and value of firms decrease with increase in receivable and inventory turnover because delay in receivables or sale of inventory enhance financing needs for working capital. Liquidity contribute largely in increase profitability as compared to value of firm. However, some variables showed partial results for both models for example profitability increased with rise in growth and cash conversion cycle. Value of firm was decreased with delay in accounts payable turnover because it cased distrust of supplier and investors. We expected size will increase profitability and value but contrary results expressed decline in both. The research findings suggest firms in Pakistan should focus on efficient working capital management for better profitability and value addition of firm.

scholarly journals The effect of working capital management, fixed financial asset ratio, financial debt ratio on profitability in Indonesian consumer goods sector

Accounting ◽  
2021 ◽  
pp. 661-666 ◽  
Author(s):  
Metya Kartikasary ◽  
Frihardina Marsintauli ◽  
Martogi Sitinjak ◽  
Sebastianus Laurens ◽  
Eka Novianti ◽  
...  
Keyword(s):  
Consumer Goods ◽  
Stock Exchange ◽  
Secondary Data ◽  
Total Sample ◽  
Financial Asset ◽  
Debt Ratio ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
The Impact

The purpose of this study is to analyze the impact of working capital management, fixed assets and debt ratio on company profitability. The study uses a sample of consumer goods sector companies listed on the Indonesia Stock Exchange from 2017 to 2019. The researchers use working capital management by the number of number of days account receivable (ARDays), the number of days Account Payable (APDays), the number of days inventory (INVDays), the Fixed Financial Asset Ratio (FA), and the Financial Debt Ratio (FD) with profitability by using gross profit (GP). Researchers used the secondary data obtained from the Indonesia Stock Exchange (IDX) on yearly basis and process the data statistics with multiple regression by SPSS 20. The population of this research includes 54 companies and the total sample covers 46 companies by passing the purposive sampling stage. The results of this study indicate that there was a significant relationship between working capital management, FA ratio and profitability while FD ratio had no effect on profitability.

scholarly journals ANALISIS PENGARUH MANAJEMEN MODAL KERJA, PERTUMBUHAN PENJUALAN DAN KEBIJAKAN HUTANG TERHADAP PROFITABILITAS PERUSAHAAN

2020 ◽  
Vol 4 (2) ◽  
pp. 299-309
Author(s):  
Afriyanti Hasanah
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Sales Growth ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Testing Method ◽  
Total Observation

This study aims to examine the effect of working capital management, sales growth and leverage on profitability. This study uses secondary data with data collection techniques using the annual financial statements of property and real estate companies listed on the Indonesia Stock Exchange (IDX) for the period 2013-2017. Through the purposive sampling method, 20 companies have met the criteria of a total population of 61 companies, so that the total observation for 5 years is 100 samples. The testing method in this study uses multiple regression analysis with panel data. The results of this study indicate that working capital management does not have an effect on profitability, sales growth variable has an influence on profitability, and leverage variables show no influence on profitability.  

scholarly journals Working Capital Management and Profitability of Manufacturing Sector of Bangladesh: A Causal Relationship

2017 ◽  
Vol 4 (2) ◽  
pp. 47-54
Author(s):  
Kashfia Haque Neelom ◽  
Suzona Asad
Keyword(s):  
Causal Relationship ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Negative Relationship ◽  
Capital Management ◽  
Multivariable Model ◽  
Working Capital ◽  
Working Capital Management ◽  
Significance Level ◽  
Sample Data

This paper explores the causal relationship between working capital management and corporate profitability of manufacturing sector of Bangladesh. Sample data is composed of 21, Dhaka Stock Exchange (DSE) listed companies of Bangladesh, of four different industries from the year 2011 to 2015. A multivariable model has been developed to examine the association between profitability and the working capital management. In the analysis, current ratio and debt ratio have been used as control variables. The findings clearly indicate a negative relationship between working capital management and profitability in the overall manufacturing sector as well as in each of these four industries and significance level varies from industry to industry.  

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