scholarly journals WORKING CAPITAL MANAGEMENT OF TRADE ENTERPRISES FROM THE POSITION OF FUNCTIONAL AND REFLECTING AND STRUCTURAL AND CLASSIFICATION APPROACHES

2019 ◽  
pp. 68-77
Author(s):  
Oksana Blуznіuk ◽  
Alona Sifurova
Keyword(s):  
Asset Management ◽  
Financial Stability ◽  
Retail Trade ◽  
Enterprise Management ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Current Asset ◽  
Reproduction Process ◽  
Operational Activities

Introduction. The article proves the necessity of improving the overall system of enterprise trade management by developing an efficient subsystem of working capital management in the unity and interconnection with other subsystems and elements. It has to be done in the context of the successive stages of the transformation and reproduction and financial and economic cycle of the operation of a trading enterprise. Purpose. The article aims to substantiate the content and mechanism of the subsystem of current asset management of the trade enterprise on the basis of the use of functional and reproductive and structural and classification approaches. Method. According to the State Statistics Service of Ukraine, the analysis of the dynamics and structure of the volume and structure of financial sources of capital and assets of Ukrainian trade enterprises during 2010-2017 is carried out. It is revealed that the vast majority of domestic enterprises of wholesale and retail trade suffer from a sharp shortage of own funds for the formation of working capital, which is a source of financing of constituent elements of current assets. It significantly affects the level of financial stability, independence and efficiency of financial and economic activity of trade enterprises. Results. The scientific approaches to enterprise management organization based on a systematic approach have been considered and systematized. The effect of modern mechanism of working capital management as an important element of the overall system of management of the trade company has been investigated, taking into account the high proportion of borrowed funds in the structure of sources of financial resources and the significant impact of working capital on the financial performance of trade enterprises. The essence, functions, principles, features, the mechanism of application of functional and reproductive and structural and classification approaches to the management of working capital of trading enterprises in separate successive stages of the reproduction process have been determined. It has been substantiated the expediency of using new approaches to management with the purpose of activating the processes of formation of working capital from diversified financial sources, its investment in current assets, increase of efficiency of use in operational activities and reproduction on a capitalized basis in trade enterprises.

A Study On Comparison About Working Capital Management Of State Bank Of India And Industrial Credit And Investement Corporation Of India

Think India ◽  
2019 ◽  
Vol 22 (2) ◽  
pp. 251-276
Author(s):  
S. DEVI ◽  
R.POORNIMA RANI
Keyword(s):  
Main Theme ◽  
Managerial Accounting ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Efficient Operation ◽  
Working Capital Management ◽  
Satisfactory Level ◽  
Current Asset

Working capital management refers to a company's managerial accounting strategy designed to monitor and utilize the two components of working capital, current assets and current liabilities, to ensure the most financially efficient operation of the company. The goal of working capital management is to manage the firm’s current asset and current liabilities in such a way that satisfactory level of working capital is maintained. A study on comparison in working capital management with State Bank of India and Industrial Credit and Investment Corporation of India is analyzed to know the liquidity and current ratio. The interaction between current asset and current liabilities is therefore is the main theme of the theory of working capital management.

scholarly journals Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana

2017 ◽  
Vol 64 (2) ◽  
pp. 255-269 ◽  
Author(s):  
Anokye M. Adam ◽  
Edward Quansah ◽  
Seyram Kawor
Keyword(s):  
Stock Exchange ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Financing Policies ◽  
Current Asset ◽  
Investment And Financing ◽  
Management Policies ◽  
Ghana Stock Exchange

Abstract This study sought to determine the effects aggressive/conservative current asset investment and financing policies have on firms′ return for six manufacturing firms listed at Ghana Stock Exchange for a period of 2000-2013. Data were obtained from the annual reports of the firms and the Ghana Stock Exchange. The study adopted longitudinal explanatory non-experimental research design applied to dynamic panel ARDL framework in analyzing the data. The results revealed that the current asset investment and financing policies have highly significant positive effects on returns to equity holders in the long-run. The empirical evidence suggests that conservative current asset investment policies increase firms return while conservative financing policies yields negative returns. The study therefore would enable finance managers to be able to fashion out the appropriate working capital management policies. A firm pursuing conservative current asset investment policy should balance it with aggressive current asset financing policy in order to enhance profitability and create value for their investors.

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 Working Capital Management in Ancillary’s of BHEL, Tiruchirappalli, Tamil Nadu

2018 ◽  
Vol 7 (3) ◽  
pp. 14-17
Author(s):  
D. Muthusamy ◽  
M. Sathish Kumar
Keyword(s):  
Tamil Nadu ◽  
Raw Materials ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Book Value ◽  
Current Asset ◽  
Time Gap ◽  
The Difference

The amount of profit largely depends on the magnitude of sales. However sales do not converted into cash instantaneously in this concern. There is always a time gap between the sales of goods and receipt of cash. Working capital is required for this period in order to sustain the conversion activity. In case adequate working capital is not available for the period, the company will not be in a position to sustain the sales since it may not be in a position to purchase raw materials, payment of wages and other operating expenses that required for manufacturing the goods that to be sold. It is a descriptive that capital which is to consider the difference between book value of current asset and current liabilities. This study has to analysis the working capital management in ancillary units of BHEL.

scholarly journals Effects of working capital management policies on shareholders’ value: Evidence from listed manufacturing firms in Ghana

2019 ◽  
Vol 66 (5) ◽  
pp. 659-686
Author(s):  
Anokye Adam ◽  
Edward Quansah
Keyword(s):  
Stock Exchange ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Investment Policies ◽  
Financing Policies ◽  
Current Asset ◽  
Management Policies ◽  
Ghana Stock Exchange

This study has sought to determine the effects of working capital management policies on shareholder value creation for six manufacturing firms listed at the Ghana Stock Exchange for the period of 2000-2013. Data were gathered from the annual reports of the firms and the publication of Ghana Stock Exchange. The study employed a longitudinal explanatory non-experimental research design applied to a dynamic panel Autoregressive Distributed Lags methodology framework for analysing the data. The results indicated that conservative current asset investment policies increase economic value added (EVA), whereas aggressive current asset investment policies enhance market-to-book ratio and Tobin?s Q in the long-run. On the other hand, conservative current asset financing policies enhance market-to-book ratio, Tobin?s Q, and EVA in the longrun. Thus, investors discount aggressive current assets? financing policies. A firm pursuing an aggressive current asset investment policy should balance it with a conservative current asset financing policy to create value for its shareholders.

scholarly journals A Study on Working Capital Management at EID Parry

2020 ◽  
Vol 6 (7) ◽  
pp. 37-41
Keyword(s):  
Balance Sheet ◽  
Secondary Data ◽  
Vital Role ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Turnover Ratio ◽  
Business Operations ◽  
Current Asset ◽  
Asset Turnover

The working capital management has an important role for the firm’s success or failure because of its effect on firm’s performance and liquidity. A well designed and implemented working capital management is expected to contribute positively to the creation of a firm’s value. “Working Capital” is the capital invested in different items of current assets needed for the business, viz, inventory, debtors, cash and other current assets such as loans & advances to third parties. Those current assets are essential for smooth business operations and proper utilization of fixed assets. The study is descriptive in nature. The secondary data is used for this study and four years balance sheet. The Working Capital Turnover Ratio, Current Asset Turnover Ratio, Probability Ratio. It was concluded that the working capital is a vital role of an organization

Working Capital Policy for Wholesale Trade Companies

2020 ◽  
Vol 2020 (3) ◽  
pp. 78-105
Author(s):  
Svetlana Makarova ◽  
Elena Ermakova
Keyword(s):  
Retail Trade ◽  
Strong Impact ◽  
Capital Management ◽  
Working Capital ◽  
Economic Sectors ◽  
Metal Production ◽  
Wholesale Trade ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
The Impact

This article contains a new approach to working capital management which influences significantly the profitability and liquidity of companies. The impact of working capital management on financial results is regarded mostly theoretically in Russian literature, while in numerous foreign articles empirical results are controversial. The article presents the empirical research on the basis of 8890 Russian wholesale trade companies over the period of 2014- 2018, which reveals a non-linear relation between the profitability and cash conversion cycle. Similar relation is also revealed for 2290 Russian retail companies, 2320 Russian metal production companies and 1760 construction companies. As a result, we proved the existence of such a cash conversion cycle which provides maximum profitability for different economic sectors. This cash conversion cycle equals 19 days for wholesale trade, 9 days for retail trade, 38 days for construction and 43 for metal production. Moreover, the formula of cash conversion cycle is modified to show how the desired cash conversion cycle may be achieved. This formula demonstrates a strong impact of working capital policy on cash conversion cycle and proves the importance of coherent working capital policy. The results may be useful in the working capital management to provide an increase in profitability combined with maintenance of chosen liquidity level.

Interest Rate Swaps: A Tool for Working Capital Management

1997 ◽  
Vol 22 (2) ◽  
pp. 65-68
Author(s):  
Abhijit Dutta
Keyword(s):  
Interest Rate ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Fixed Rate ◽  
Working Capital Management ◽  
Interest Rate Swaps ◽  
Current Asset

Swaps are here to stay as a fruitful combination of swaps with other fixed rate debt serves the firm's long and short-term interest. In this paper, Abhijit Dutta shows how a firm's current asset and liability positions can be changed by the use of Plain Vanilla Swaps.

Economic downturns and working capital management practices: a qualitative enquiry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sunday Simon ◽  
Norfaiezah Sawandi ◽  
Satish Kumar ◽  
Magdi El-Bannany
Keyword(s):  
Interest Rates ◽  
Management Practices ◽  
Trade Credit ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Content Type ◽  
Economic Downturns ◽  
Operational Activities ◽  
The Impact

Purpose This study aims to explore changes in working capital management (WCM) practices in response to economic downturns, especially during the coronavirus pandemic. Design/methodology/approach This study adopts an interpretative approach. This paper used semi-structured interviews with 2 finance directors and 13 top managers for data collection. This paper used thematic analysis for analysing the interview data. Findings The study findings suggest that the traditional ways of managing working capital may no longer be sufficient during a crisis. Instead, dynamic financing, trade credit policy and continuous staff training to develop new skills are alternative WCM practices to navigate the challenges of a crisis. Further, this paper finds that economic conditions, such as inflation rates, interest rates, exchange rates and government policy, negatively affect WCM. Practical implications The study findings highlight practical issues that may help firms meet their present and future financing needs, manage their day-to-day operational activities and enhance performance, both operational and financial. The study is beneficial for regulators in understanding a firm’s constraints during crises and respond appropriately. Originality/value This is the first study, to the best of the knowledge that uses a qualitative approach to investigate the impact of economic downturns on WCM practices of firms. Thus, this study offers new insights into the fundamentals of WCM practices during crises.

scholarly journals Working capital management practices and sustainability of Barangay Micro Business Enterprises (BMBEs) in Ilocos Norte, Philippines

2021 ◽  
Vol 10 (2) ◽  
pp. 21-32
Author(s):  
Bibeth Macatumbas Corpuz ◽  
Nelson Bool
Keyword(s):  
Inventory Management ◽  
Environmental Sustainability ◽  
Management Practices ◽  
Retail Trade ◽  
Capital Management ◽  
Working Capital ◽  
Design Data ◽  
Working Capital Management ◽  
Descriptive Research ◽  
Business Enterprises

This study examines the relationship between the working capital management practices and sustainability of Barangay Micro Business Enterprises (BMBEs) in Ilocos Norte, Philippines. This study employed a correlational-descriptive research design. Data were gathered using a self-constructed questionnaire, which has been pre-tested to 30 other microenterprises and validated using Cronbach alpha. The participants were the owners of the 301 registered BMBEs in Ilocos Norte. This study was conducted from July to December 2020. The findings demonstrated that most of the BMBEs belong to the wholesale and retail trade sector, are registered as single proprietorships, and have no employees. The results also showed that the BMBEs have low economic, social, and environmental sustainability. Moreover, the study revealed that cash management was significantly related to economic and social sustainability, while accounts receivable and inventory management were significantly related to economic, social, and environmental sustainability.

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