Relationship Between Management of Working Asset and Firm Prof-itableness: (Case of Digi Telecom Berhad Malaysia)

2021 ◽  
Vol 4 (3) ◽  
pp. 1-14
Author(s):  
Mohamed Ali Abdinur ◽  
Turan ÖNDEŞ
Keyword(s):  
Asset Management ◽  
Negative Relationship ◽  
Secondary Data ◽  
Ratio Analysis ◽  
Working Capital ◽  
Financial Reports ◽  
The Past ◽  
Turnover Ratio ◽  
Inventory Turnover ◽  
Collection Period

The purpose of this study is to understand the association of proper management of working capital and profitableness of Digi telecom Berhad Malaysia during the period of 2015 until 2019. The methodology used is quantitative method statistics. In this paper, secondary data were used in a form of ratio analysis which is obtained from the financial reports of the past five years of Digi telecom. To investigate the strength and weakness of the correlation among working asset management and profitableness of the company correlation analysis, regression analysis and descriptive statistics were used. The findings indicate there is a solid negative correlation among return on asset to current ratio, quick ratio and day’s payable outstanding whereas there is moderate and weak negative relationship between return on asset to debtors turnover ratio and inventory turnover ratio respectively. It is important for managers of Digi telecom to create and improve the shareholders wealth and value by improving the company’s working capital ratio and reduce the days collection period and days payable outstanding.

scholarly journals Impact of Working Capital Management on Profitability: A Case Study of Trading Companies

2021 ◽  
Author(s):  
Rafathunnisa Syeda
Keyword(s):  
Negative Relationship ◽  
Working Capital ◽  
Return On Assets ◽  
Cash Conversion Cycle ◽  
Key Points ◽  
High Investment ◽  
Inventory Turnover ◽  
Collection Period ◽  
The Relationship

The success of any business depends on its profitability, liquidity, and solvency. Liquidity plays an important role in the successful running of a business. Many prior studies have been conducted to measure the relationship between working capital and profitability. The results showed that the high investment in inventories and receivables is associated with lower financial performance. They found a negative relationship between Return on Assets and Inventory turnover and Cash conversion cycle the present study is designed to know the direct impact of working capital on profitability by choosing the days of collection, days of payment, days inventory converts to sales and finally the cash conversion cycle. This study examines the association between the profitability and working capital using the data of 15 US trading companies for the period of 2015 to 2019. The key points in this study are firstly there exists a negative relationship between the profitability and the average collection period, the lower the average collection period higher will be the profitability, indicating that a decrease in the number of days a firm receives payment from sales affects the profitability of the firm positively. Secondly there is a highly significant positive relationship between average payment period and profitability. This implies that the longer a firm makes the payment to its creditors, the more profitable it is. Thirdly the cash conversion cycle decreases it will lead to an increase in profitability of the firm, and managers can create a positive value for the shareholders which indicates that it has been maintained. The regression analysis showed the value for the R-squared in the model is 0.584, i.e., 58.4% of the variation in the dependent variable Net Profitability is explained by the independent variables.

scholarly journals PENGARUH ANALISIS ELEMEN MODAL KERJA TERHADAP PROFITABILITAS ( ROI ) PADA PT. HANJAYA MANDALA SAMPOERNA , Tbk.

2018 ◽  
Vol 3 (01) ◽  
Author(s):  
Musianah Musianah ◽  
Jianto B. Amiranto
Keyword(s):  
Return On Investment ◽  
Stock Exchange ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Financial Reports ◽  
Accounts Receivable ◽  
Financial Factors ◽  
Operating Profit ◽  
Inventory Turnover

ABSTRACTThe Company was established with the aim to obtain operating profit. One way that can be done is to increase the profitability of the company. The company's profitability is influenced by a variety of financial factors which can be measured using financial ratios. The purpose of this study was to analyze the influence of the elements utuk rotation modes of work, namely perputran working capital, cash perputran receivable turnover and inventory turnover perusahanaan on profitability (Return On Investment) company. Population peneleitian is manufacturing companies listed in Indonesia Stock Exchange (BEI) is a renowned roko Company PT. HANJAYA MANDALA, Tbk. Samples used in this research are secondary data from reports keuanagan the period 2011 to 2015. The data obtained from the company's financial reports the official website of the Stock Exchange www.idx.co.id. And from the Indonesia Stock Exchange that are in UNIVERSITAS TUJUH BELAS AGUSTUS SURABAYA. Classical assumption test and multiple regression analyzes were performed using an SPSS version 22.0The results of this study indicate that the regression model is compliant with the study that there are no symptoms heteroskedastisitas, multikoliniearitas, and autocorrelation as well as the data used beristribusi normal. Regeresi multiple analysis results indicate that the F test, cash turnover , accounts receivable turnover, and inventory turnover significant effect on profitability (ROI). In test T cash turnover , receivables turnover and inventory turnover significant effect on profitability (ROI) Keywords: Cash Turnover , Accounts Receivable Turnover, Turnover supplies of , Profitability (ROI).

scholarly journals ANALISIS PERAN MODAL KERJA DALAM MENINGKATKAN PROFITABILITAS PADA KOPERASI PEDAGANG PASAR

2019 ◽  
Vol 4 (2) ◽  
pp. 561
Author(s):  
Yulitiawati Wati
Keyword(s):  
Secondary Data ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Working Capital ◽  
Working Capital Management ◽  
Return On Equity ◽  
The Past ◽  
Quantitative Data Analysis ◽  
Descriptive Approach

This study aims to determine how the role of working capital in increasing profitability in the Muaradua Gunung Putih Market Traders Cooperative in South OKU Regency. The data used are secondary data, financial statements for 2013-2017. This research uses quantitative data analysis using descriptive approach. The analysis used is the analysis of the profitability ratio of Return on Equity and Return On Investment. Based on the discussion of ratio analysis, the level of profitability of the Muaradua Gunung Putih Market Traders Cooperative in the South Oku Regency over the past five years has fluctuated. Overall the level of working capital in increasing profitability at Muaradua Gunung Putih Market traders cooperatives does not significantly influence the level of profitability, this is evident from the level of working capital that increases every year but the level of profitability (ROE and ROI) obtained by the Gunung Putih Muaradua Market Cooperative from in 2013 - 2017 has increased and decreased. From 2013 - 2015 it is said to be quite good because profitability has increased, but in 2016-2017 it has declined. This is due to ineffective working capital management so the profit / profitability obtained is less than optimal.

scholarly journals Effect Of Asset Management Efficiency On Performance Of Building And Construction Companies In Nigeria

2019 ◽  
Vol 7 (12) ◽  
pp. 50-69
Author(s):  
Godwin Oghenekohwo Akparhuere ◽  
Duru Nwakaego Anastesia ◽  
Ogbu Moses
Keyword(s):  
Asset Management ◽  
Corporate Performance ◽  
Secondary Data ◽  
Working Capital ◽  
Construction Companies ◽  
Management Efficiency ◽  
Ex Post ◽  
Ex Post Facto ◽  
Asset Turnover ◽  
Inventory Turnover

The efficiency of asset management for various reasons has been the focus of companies, managers and investors doing building and construction business in Nigeria. The main objective of this study was to ascertain the effect of asset management efficiency on corporate performance of building and construction companies in Nigeria. To accomplish the main objective three specific objectives were formulated. These include examining the effects of asset turnover, inventory turnover and working capital turnover on profit after tax (proxy for performance). The study adopted the ex-post facto research design and secondary data were collected on the independent and dependent variables for ten (12) years, i.e. 2006-2017. The data were analyzed using simple regression method and it was found that net asset turnover and working capital turnover did not have significant effect on performance of building and construction companies in Nigeria. On the other hand, inventory turnover had significant effect on corporate performance of building and construction companies of Nigeria. It was recommended that management of building and construction companies should among other things adopt modern techniques of asset management that would translate asset turnover to corporate performance.

scholarly journals Does working capital management impact an enterprise’s profitability? Evidence from selected Nigerian firms

2021 ◽  
Vol 19 (1) ◽  
pp. 477-486
Author(s):  
Adegbola Olubukola Otekunrin ◽  
Tony Ikechukwu Nwanji ◽  
Gabriel Damilola Fagboro ◽  
Johnson Kolawole Olowookere ◽  
Oladipo Adenike
Keyword(s):  
Regression Analysis ◽  
Secondary Data ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Descriptive Research ◽  
Inventory Turnover ◽  
Collection Period ◽  
The Impact

This study examined the impact of working capital management on the profitability of selected quoted agricultural and agro-allied companies (from 2012 to 2016) in Nigeria. Secondary data were extracted from eighteen quoted agricultural and agro-allied companies in Nigeria, four of which are agricultural companies out of the twenty-three in Nigeria. Descriptive research design and regression analysis were used. Working capital management was measured using the trade receivables collection period, trade payables, payment period, inventory turnover period, and cash conversion cycle, while profit before interest and tax measured profitability. This study found that working capital management and profitability are related to the agriculture and agro-allied sector in Nigeria. The result shows the trade receivables collection period and profitability are negatively related. The result also shows the trade payables payment period and profitability are positively related. The result shows that the inventory turnover period and profitability are related, the cash conversion cycle and profitability are positively related. The conclusion is that working capital management and profitability are related. If the management of firms takes efficient and effective decisions in managing the company’s working capital, all things being equal, the maximization of the firm’s profitability, value, and shareholders’ wealth can be guaranteed. Consequently, agency costs asserted by agency theory would be eliminated automatically. AcknowledgmentAll researchers and non-researchers that contributed to this paper are highly appreciated.

scholarly journals Effects of Working Capital Management on Firm’s Profitability: A Study on the Firms Listed Under DSE in Bangladesh

2020 ◽  
pp. 130-138
Author(s):  
Md. Shakhaowat Hossin ◽  
Sohana Begum
Keyword(s):  
Financial Performance ◽  
Asset Allocation ◽  
Management Practice ◽  
Negative Relationship ◽  
Secondary Data ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Conversion Period ◽  
Inventory Turnover

This paper investigates the relationship between working capital management and financial performance of Pharmaceuticals and Textile firms listed at the Dhaka Securities Exchange in Bangladesh. The data analysis was carried on ten Pharmaceuticals and Textile firms for a period of 2013 to 2017. Secondary Data was analyzed by applying Descriptive Statistics, Regression and Correlation analysis to findthe relationship of current ratio, inventory conversion period and average payment period with Return on Asset. The findings indicate that the Pharmaceuticals and Textile firms’ performance is influenced by the variables relating to working capital. There is a positive relationship between profitability and current ratioand Inventory Turnover period shows a negative relationship with profitability but Average payment period shows insignificant impact on profitability. The study concludes that there exists a relationship between working capital managementand financial performance of Pharmaceuticals and Textile firms in Bangladesh. The study recommends that for the Pharmaceuticals and Textile firms to remain profitable, they should employ working capital management practice that will help in making decisions about investment mix and policy, matching investment to objective, asset allocation for institution and balancing risk against profitability.

scholarly journals Firm Profitability And The Administration Of Working Capital: Delving Into A Case Of The Cement Sector Of Pakistan

2021 ◽  
Vol 5 (2) ◽  
pp. 59-64
Author(s):  
Farhan Ullah ◽  
Farhan Ullah ◽  
Dr. Mustafa afeef
Keyword(s):  
Stock Exchange ◽  
Negative Influence ◽  
Cement Industry ◽  
Working Capital ◽  
Financial Reports ◽  
Explanatory Variables ◽  
Cash Conversion Cycle ◽  
Conversion Period ◽  
Inventory Turnover ◽  
Collection Period

This study endeavors to establish an association between the administration of working capital and firm returns in Pakistan’s cement sector. Ten companies listed in the cement industry of KSE 100 Index were taken from Pakistan Stock Exchange randomly. Financial data in secondary form was collected from the financial reports of cement firms of the country. The study employed return on assets as an explained variable and inventory turnover period in days, collection period in days, payment period, cash conversion cycle, sales in log, and liquidity ratios as explanatory variables while controlling for the influence offirm’s size and firm’s growth in terms of sales. It was found that the current ratio, log of sales, cash conversion cycle and inventory conversion period positively influenced the return of companies whereas size of the firm, collection period of receivables, payment period to creditors and the debt ratio of firms had a negative influence on it.

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 Analisis Penilaian Kesehatan Keuangan Lembaga Penjamin Dengan Menggunakan Surat Edaran OJK Nomor 18/SEOJK.05/2018

2021 ◽  
Vol 1 (2) ◽  
pp. 475-486
Author(s):  
Anggraeni Novitasari ◽  
Kristianingsih Kristianingsih ◽  
Hasbi Assidiki Mauluddi
Keyword(s):  
Financial Services ◽  
Financial Institution ◽  
Secondary Data ◽  
Ratio Analysis ◽  
Financial Health ◽  
Financial Reports ◽  
Descriptive Research ◽  
Period 2 ◽  
Research Type ◽  
Category Score

This study aims to analyze the financial health of. the Sharia Guarantee Institution for the period 2014 to 2018 using liquidity ratio analysis, Gearing Ratio, and Profitability using analysis techniques of the Health Level of the Guarantee Company Financial Institution based on theIRegulationIof the Financial Services Authority (SAL SEOJK) Number 18 /SEOJK.05/2018. This research is a descriptive research type, which describes the financial performance of PT Asuransi Jamkrindo Syariah and PT Penjaminan Jamkrindo Syariah. The data research method used in this research. is the documentation method. The type of data used in the research is secondary data, which is obtained from the annual financial reports of PT Asuransi Jamkrindo Syariah and PT Penjaminan Jamkrindo Syariah for the period 2014 to 2018. The results obtained in this study are the level of health at PT Asuransi Askrindo Syariah and PT Penjaminan Jamkrindo. This Sharia falls into a fairly healthy category for five years. Whereas for 2014, PT Penjaminan Jamkrindo Syariah received an unhealthy category level. This is supported by the results of research on 1) the gearing ratio of the two companies that received a very poor category for five years period 2) the performance in the liquidity ratio shows that PT Penjaminan Jamkrindo Syariah received a very poor category in the first two years of the period while PT Asuransi Asuransi Askrindo Syariah received very good category value in five years period 3) the profitability ratio of the two companies, PT Penjaminan Jamkrindo Syariah got a pretty good category in 2014 and got a very good category in the following year period, PT Asuransi Askrindo Syariah got a good category score in 2017 while the other period of the year gets very good category.

scholarly journals Analisis Rasio Modal Kerja Pada PT. Bank BNI Tbk

2019 ◽  
Vol 9 (2) ◽  
pp. 52
Author(s):  
Laurens D. Lumantow ◽  
Dolina L. Tampi ◽  
Joula J. Rogahang
Keyword(s):  
Secondary Data ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Working Capital ◽  
Short Term ◽  
Turnover Ratio ◽  
Capital Adequacy Ratio ◽  
Analytical Tools

This research aims to analyze and find out how working capital adequacy ratio. This research was conducted at the PT. Bank BNI Tbk. The methods used in this research is descriptive quantitative and analytical tools used are Working capital adequacy Ratio which consists of three types of ratios i.e. ratio of Total Assets to capital The work is clean, current liabilities against the Net working capital and working capital Turnover. The data used are secondary data from the financial statements of PT Bank BNI Tbk. Results of the study explained that the calculation of the ratio of Total Assets Against Net working capital in the year 2015 to 2017. And the results of calculation of the ratio of current liabilities against the Net working capital in the year 2015 to 2017. And the results of the calculation of working capital Turnover Ratio by the year 2015 to 2017 is also quite good. The results of the analysis of the work on capital adequacy ratio of the company will give an overview of how companies can manage the capital works. We suggest PT Bank BNI Tbk. can use working capital optimally. So the company could cover the liabilities are short-term and the company was able to produce profits every year.

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