Working Capital Management on Profitability and Earning Assets of Insurance Industry in Egypt

This paper is an attempt to investigate the effect of working capital management, measured by (Current Ratio, Quick Ratio and Liquidity)on dependent variables (Return on Assets, Return on Equity and Earning Assets (Asset Quality) of insurance firms in Egypt, the study sample is 49% from total insurance firms working of the insurance market in Egypt in 1999- 2019.A structural equation modelling was selected to construct of the model of this study, The evidences show that There is a positive significant effect on construct of the independent variables, current ratio (x1), quick ratio (x2), and liquidity (x3) on construct of the dependent variables in terms of Return on Equity (Y1), at a probability level less than (0.001). This validates the first hypothesis; the independent variables Current Ratio(x1), Quick Ratio(x2), and Liquidity(x3) have a significant effect on the dependent variables Return on Equity (Y1), There is a positive significant effect on the construct of the independent variables, Current Ratio (x1), Quick Ratio (x2), and Liquidity (x3) on the construct of the dependent variables in terms of Earning Assets (Asset Quality) (Y3), probability level less than (0.001). This validates of the third hypothesis; the independent variables in terms of Current Ratio (x1), Quick Ratio (x2), and Liquidity (x3) have a significant effect on (Earning Assets) Asset Quality (Y3).

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Efficiency of Working Capital Management and Profitability: Evidence from Manufacturing Firms of Nepal

Management Dynamics ◽

10.3126/md.v22i1.30236 ◽

2019 ◽

Vol 22 (1) ◽

pp. 21-34

Author(s):

Pitambar Lamichhane

Keyword(s):

Comparative Research ◽

Manufacturing Firms ◽

Fiscal Year ◽

Regression Result ◽

Capital Management ◽

Working Capital ◽

Current Ratio ◽

Working Capital Management ◽

Explanatory Variables ◽

Dependent Variables

This paper analyzes efficiency of working capital management (EWCM) and its influence on profitability of manufacturing firms in Nepal for the fiscal year 2005/06 to 2017/18 using descriptive and causal comparative research design. Net trade cycle (NTC) is used to measure EWCM. Profitability on assets (PA) and profitability on sales (PS) are dependent variables of this study. The EWCM related variables such as Net trading cycle (NTC), current ratio (CR) and debt to assets ratio (DR) are considered as explanatory variables. Result of this paper reveals both profitability on assets and profitability on sales are inversely related with NTC which implies that lower NTC increases profitability of manufacturing firms in Nepal. Further, regression result of this paper confirms that debt to assets ratio has negative and statistically significant effect on profitability on total assets and profitability on sales. The finding of this paper concludes that less uses of debt increases the profitability of manufacturing firms in Nepal.

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Efficiency of Working Capital Management and Profitability: Evidence from Manufacturing Firms of Nepal

Management Dynamics ◽

10.3126/md.v22i2.30236 ◽

2019 ◽

Vol 22 (2) ◽

pp. 21-34

Author(s):

Pitambar Lamichhane

Keyword(s):

Comparative Research ◽

Manufacturing Firms ◽

Fiscal Year ◽

Regression Result ◽

Capital Management ◽

Working Capital ◽

Current Ratio ◽

Working Capital Management ◽

Explanatory Variables ◽

Dependent Variables

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Impact of working capital management on profitability of Industrial sector in Iraq.

International Journal of Finance & Banking Studies (2147-4486) ◽

10.20525/ijfbs.v7i1.837 ◽

2018 ◽

Vol 7 (1) ◽

pp. 27

Author(s):

Sardar Shaker Ibrahim

Keyword(s):

Industrial Sector ◽

Least Square ◽

Annual Reports ◽

Capital Management ◽

Working Capital ◽

Current Ratio ◽

Working Capital Management ◽

Return On Equity ◽

Ordinary Least Square ◽

The Impact

<p><em>This paper observes the impact of working capital management on profitability of industrial sector in Iraq. Four companies based in Iraq namely: Iraqi Date processing, Iraqi carton manufactories, Baghdad soft drinks and Iraqi for tufted carpets randomly selected and analyzed for the present study over the period 2007 to 2016. Annual reports of these companies have been studied and significant ratios calculated. The variables that were identified as independent for working capital were, current ratio and quick ratio, while return on equity ROE as dependent variable for profitability. The Ordinary Least Square (OLS) model used to examine the impact of working capital management on profitability. Results indicate that ROE is positively related with working capital variables.</em></p>

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IMPACT OF AGGRESSIVENESS OF WORKING CAPITAL MANAGEMENT ON FIRM'S PROFIT

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2019.7392 ◽

2019 ◽

Vol 7 (3) ◽

pp. 612-618

Author(s):

Dr. Khurram Sultan ◽

Muhammad Muzammal Murtaza

Keyword(s):

Stock Exchange ◽

Capital Management ◽

Working Capital ◽

Current Ratio ◽

Working Capital Management ◽

Independent Variables ◽

Cash Conversion Cycle ◽

Maximum Profit ◽

The Cost ◽

The Impact

Purpose of Study: The study intends to analyze the fact that whether it is better to be aggressive or conservative in formulating strategies for working capital management. The main objective of any firm is to earn the maximum profit but caring for the liquidity is also an important element. Profit of the firm can be increased, the problem comes when profit increases at the cost of liquidity. Methodology: The data we have collected is from Karachi stock exchange (61 companies) in Pakistan for the time tenure of 6 years (2013-2018). Results: This study explores the impact of aggressiveness of working capital management on the firm's profit. Implications/Applications: According to our analysis while considering the Current ratio and Cash conversion cycle as independent variables, there is a significant impact of Current ratio on the firm's profit.

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Working capital management and bank performance: empirical research of ten deposit money banks in Nigeria

Banks and Bank Systems ◽

10.21511/bbs.13(2).2018.05 ◽

2018 ◽

Vol 13 (2) ◽

pp. 49-61 ◽

Cited By ~ 10

Author(s):

Osuma Godswill ◽

Ikpefan Ailemen ◽

Romanus Osabohien ◽

Ndigwe Chisom ◽

Nkwodimmah Pascal

Keyword(s):

Banking Sector ◽

Random Effect ◽

Periodic Review ◽

Capital Management ◽

Working Capital ◽

Bank Profitability ◽

Working Capital Management ◽

Return On Equity ◽

Minimum Capital ◽

Asset Quality

Working capital management is germane for the success of the banking industry in Nigeria, especially the current state of the sector, which is engulfed with the effect of the global decline in oil price that has resulted in non-performing loans, deterioration of the bank asset quality, laying-off of staff amongst others. This is one of the reasons why the profitability of the banking sector deeply depends on the efficient management of a bank’s working capital. Therefore, the objective of this study is to examine how profitability of banks can be enhanced through the working capital management. To empirically carry out the analysis, panel data which consist of ten (10) deposit money banks in Nigeria for seven years (2010–2016) employing the panel fixed effect, panel random effect and the pooled OLS for the two models, which were used as proxies for bank profitability, which includes return on asset (ROA) and return on equity (ROE) to examine the best measure for bank profitability, with the indicators of working capital; net interest income, current ratio, profit after tax, and monetary policy rate. Results of the study showed that working capital management has a significant effect on the profitability of the selected banks and that return on asset is a better measure for bank profitability. Therefore, the study recommends that there should be a periodic review of the minimum capital base of the Nigerian deposit money banks so as to mitigate the effects of inflation and inculcate the consequence of time value of money, because the purchasing power of one (₦1) naira or one ($1) dollar today would not be sufficient to purchase what it can purchase today for tomorrow.

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

Think India ◽

10.26643/think-india.v22i2.8726 ◽

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.

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ANALISIS PENGARUH MANAJEMEN MODAL KERJA TERHADAP PROFITABILITAS PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI DASAR DAN KIMIA GO PUBLIC PADA BURSA EFEK INDONESIA (BEI) PERIODE TAHUN 2011 - 2014

JURNAL STUDI MANAJEMEN ORGANISASI ◽

10.14710/jsmo.v13i2.13402 ◽

2016 ◽

Vol 13 (2) ◽

pp. 121

Author(s):

Citra Indradewi ◽

Endang Tri Widyarti

Keyword(s):

Hypothesis Test ◽

Sampling Technique ◽

The Other ◽

Capital Management ◽

Working Capital ◽

Working Capital Management ◽

Significance Level ◽

Independent Variables ◽

Other Hand ◽

Conversion Period

This research aims to analyze the effect of working capital management on profitability ofbasic industry and chemicals that listed in Indonesia Stock Exchange (IDX) within 2011-2014. Indicator of working capital management used in this research are cash conversioncycle (CCC), receivable conversion period (RCP), inventory conversion period (ICP),payable deferral period (PDP), and current ratio (CR). On the other hand, indicator ofprofitability used in this research is net profit margin (NPM).The sample data used in this research took from financial statement that have beenaudited and published in IDX. According to sampling technique used in this research,which is purposive sampling, there’re 25 companies that fit to certain criteria. Method ofdata analysis used in this research is Multiple Regression Analysis, which previouslyperformed classical assumption test. Hypothesis test is using F-statistic test, t-statistictest, and determination of coefficients with significance level of 5%.The result of this research indicates independent variables simultaneously (F-statistictest) effect on profitability (NPM) with significance level 0,000. On the other hand,partially (t-statistic test) indicates CCC has negative and significant effect onprofitability, PDP and CR have positive and significant effect on profitability.Meanwhile, RCP and ICP has positive and not significant effect on profitability. Adjusted’s score is 0,454 which means that the ability of independent variables can explainprofitability with 45,4%, while the rest is explain by other factors.

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Pengaruh Manajemen Modal Kerja Terhadap Profitabilitas (Studi Empiris Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia)

AKRUAL Jurnal Akuntansi ◽

10.26740/jaj.v4n1.p35-50 ◽

2012 ◽

Vol 4 (1) ◽

pp. 35

Author(s):

Ika Permatasari ◽

Dian Puspitasari

Keyword(s):

Logistic Regression ◽

Cash Flow ◽

Stock Exchange ◽

Value Added ◽

Flow Ratio ◽

Capital Management ◽

Working Capital ◽

Current Ratio ◽

Working Capital Management ◽

Equity Ratio

AbstractThis research aims to analyze the affect between working capital management as measured by current ratio (CR), cash flow ratio (CFR), and debt to equity ratio (DER) to profitability as measured by value added (VA). The sample used was manufacturing company listed on Indonesia Stock Exchange period 2009-2011. The analysisis using logistic regression. The results show thatcurrent ratio had negativeeffect on the profitability and cash flow ratio had positiveeffect on the profitabilityratio. However, debt to equity ratio had no effect on profitability.

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Effects of Working Capital Management on Profitability: A Case of Nepalese Manufacturing Firms

International Research Journal of Management Science ◽

10.3126/irjms.v5i1.35869 ◽

2021 ◽

Vol 5 (1) ◽

pp. 130-147

Author(s):

Phadindra Kumar Poudel ◽

Pujan Maharjan

Keyword(s):

Significant Relationship ◽

Stock Exchange ◽

Capital Management ◽

Working Capital ◽

Current Ratio ◽

Cross Sectional ◽

Working Capital Management ◽

Listed Firms ◽

Financial Firms ◽

Cash Conversion Cycle

The study deals with the relationship between firm characteristics of working capital management and firm profitability in Nepal. It examines if firm performance, return on assets is related to cash conversion cycle, days’ sales outstanding, days’ inventory outstanding and current ratio. The study is based on pooled cross-sectional data of 10 non-financial firms from 2071/72 to 2075/76 of listed firms in the Nepal Stock Exchange. The study employed descriptive and causal-comparative research design to attainthe purpose of this study. The result reveals that the current ratio has a positively significant relationship with profitability and days’ sale outstanding has negatively significant relationship with the financial performance of the firm.

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Pengaruh Activity Ratio, Working Capital Management, Firm Size Dan Leverage Ratio Terhadap Profitability Pada Perusahaan Sub Sektor Property Dan Real Estate Yang Terdaftar Dalam Bursa Efek Indonesia

Jurnal Manajemen Bisnis dan Kewirausahaan ◽

10.24912/jmbk.v2i2.4827 ◽

2019 ◽

Vol 2 (2) ◽

Author(s):

Nadia Lionardi

Keyword(s):

Real Estate ◽

Firm Size ◽

Activity Ratio ◽

Stock Exchange ◽

Random Effect ◽

Capital Management ◽

Working Capital ◽

Working Capital Management ◽

Leverage Ratio ◽

Independent Variables

The purpose of this research was to determine the effect of activity ratio, working capital management, firm size and leverage ratio to company’s profitability in sub sector property and real estate listed in Indonesia Stock Exchange. The sampling method was done by using purposive sampling. Secondary data collection methods were taken from IDX published financial statements. This research used multiple regression analysis with random effect method to test their hypothesis using Eviews 6. The results show that activity ratio, firm size and leverage ratio have a positive significant affect to company’s profitability measured using ROE, while working capital management has a negative insignificant affect to company’s profitability. F-test result show that all independent variables in this research simultaneously have a significant effect to company’s profitability in sub sector property and real estate listed in Indonesia Stock Exchange. In the test of Adjusted R2, the analysis results showed that 39,83% profitability was influenced by the independent variables of this research while the remaining 60,17% influenced by other factors not studied.

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