Working Capital Management and Profitability: A Study of Selected listed manufacturing Companies in Nigerian Stock Exchange

2014 ◽  
Vol 4 (8) ◽  
Author(s):  
Salman, A. Y. ◽  
Folajin, Oyetayo. O. ◽  
Oriowo, A. O.
Keyword(s):  
Stock Exchange ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management

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 An Analysis of Proposed Framework on Impact of Working Capital Management on the Profitability of Selected Manufacturing Companies Listed on the Nigerian Stock Exchange

2012 ◽  
Vol 4 (12) ◽  
pp. 730-736 ◽  
Author(s):  
Yusuf Aminu
Keyword(s):  
Inventory Management ◽  
Business Strategy ◽  
Trade Credit ◽  
Stock Exchange ◽  
Optimal Level ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
The Impact

Working capital management encompasses the overall idea of management of current assets and current liabilities of a business. Whether empirical or conceptual, the discussion have delineated working capital management as that part of business strategy which involves effective management of short term or current assets and liabilities to ensure optimal level and maximization of value. This paper aims to provide an analysis on the concept and propose framework that emphasizes on investigating the impact of management of working capital on the profitability of manufacturing companies listed on the Nigerian stock exchange. The paper proposes four dimensions (variables) as cash management levels, inventory management levels, receivable management, and the trade credit (Accounts payable) as measures of working capital management and the profitability of companies.

scholarly journals The Determinant of Working Capital Management of Manufacturing Companies

2017 ◽  
Vol 32 (2) ◽  
pp. 276 ◽  
Author(s):  
Mias Fatimatuzzahra ◽  
Retno Kusumastuti
Keyword(s):  
Cash Flow ◽  
Firm Size ◽  
Firm Growth ◽  
Capital Expenditure ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle

Working capital is directly related to the operations activity of the company to produce goods. To be able to properly manage its working capital, the company must determine what factors that can affect working capital. Actually, there are many factors that affect working capital management but the factors that used in this study are firm size, leverage, firm growth, cash flow, profitability, capital expenditure, and GDP. Meanwhile, working capital management is reflected by the cash conversion cycle. By taking samples at manufacturing companies listed in Indonesia Stock Exchange period of 2010 - 2014, found there are a significant effect of firm size, firm growth, cash flow, profitability, and GDP. This is due to the leverage and capital expenditure shows insignificant effect.

Analysis of Working Capital Management and Cash Holding on Profitability of Manufacturing Companies Listed in Indonesia Stock Exchange Period 2014 – 2018

2020 ◽  
Vol 2 (2) ◽  
pp. 65-71
Author(s):  
Niko Sianipar ◽  
Syamsu Alam ◽  
Mursalim Nohong
Keyword(s):  
Stock Exchange ◽  
Statistical Tests ◽  
The Other ◽  
Cash Holding ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Significance Level ◽  
Conversion Period

This research aims to analyze the effect of working capital management on the profitability of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2014-2018. Working capital management indicators used in this research are the cash conversion cycle (CCC), the inventory conversion period (ICP), the receivable conversion period (RCP), the debt repayment period (PDP), and Cash Holding (CASH). On the other hand, the profitability indicator used in this research is Return On Assets (ROA) The sample data used in this study is taken from the audited financial statements and published on the IDX. According to the sampling technique used in this research, namely purposive sampling, there are 73 companies that fit certain criteria. This research uses descriptive statistics with a quantitative approach and uses time series data regression techniques assisted with the Eviews version 9 program. Hypothesis testing uses F statistical tests, t statistical tests, and coefficient determination with a significance level of 5%. The results of this research indicate the simultaneous independent variable (F-statistic test) affect the profitability (ROA) with a significance level of 0,000. On the other hand, partially (t test statistic) shows CCC and PDP have positive and not significant effect on profitability, ICP has a negative and no significant effect on profitability, RCP has a negative and significant effect on profitability. Meanwhile CASH has a positive and significant effect on profitability.

scholarly journals Working Capital Management and Corporate Performance: Evidence from Sri Lankan Listed Manufacturing Firms

2018 ◽  
Vol 7 (2) ◽  
pp. 577 ◽  
Author(s):  
Ratnam Vijayakumaran ◽  
Sunitha Vijayakumaran
Keyword(s):  
Stock Exchange ◽  
Optimal Level ◽  
Sri Lankan ◽  
Firm Characteristics ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Firm Profitability ◽  
Performance Effects

Working capital that represents a significant portion of a firm’s total assets affects its profitability and liquidity. This study examines the performance effects of working capital management using a panel of listed manufacturing companies on the Colombo Stock Exchange (CSE) over the period 2011 to 2016. Controlling for unobservable firm specific heterogeneity and a set of observable firm characteristics, we document that working capital is non-linearly (inverted U-shaped) related to firm profitability. This indicates the existence of an optimal level of working capital that balances the costs and benefits of maintaining working capital, and maximizes firm’s performance.

scholarly journals THE IMPACT OF WORKING CAPITAL MANAGEMENT TO PROFITABILITY OF MANUFACTURING COMPANY LISTED IN INDONESIAN STOCK EXCHANGE

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Valiensi Utia ◽  
Nanny Dewi ◽  
H. Sutisna
Keyword(s):  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Analysis Tool ◽  
Manufacturing Companies ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Manufacturing Company ◽  
The Impact

ABSTRACT Manufacturing companies in Indonesia are increasing in number in recent years. Large growth should be balanced with good working capital management due to the manufacturing company is carrying out buying of raw material activity, afterward convert them into semi-finished goods and finished goods. Cycles from purchasing goods, inventory management, debt repayment, product sales, cash received will have effect on profitability.Purpose of this study to determine whether working capital management affect profitability of manufacturing companies publicly listed on Indonesian Stock Exchange from 2010-2015. This study uses quantitative method by using linear regression analysis tool on panel data.Results of this study found that the component of working capital proved to affect profitability of manufacturing companies Listed in Indonesian Stock Exchange. Therefore the companies should be able to manage properly their working capital. Manufacturing companies should improve their management pattern applied to their current assets and current liabilities. Working capital management should be performed by shortening cash conversion cycle, debt withholding, and by increasing current assets value due to it proves to be able to improve profitability of the company.

scholarly journals The impact of Working Capital Management on shareholders’ wealth and profitability: evidence from Colombo Stock Exchange

2018 ◽  
Vol 15 (2) ◽  
pp. 104-115
Author(s):  
Wasantha Perera ◽  
Pradeep Priyashantha
Keyword(s):  
Firm Size ◽  
Regression Models ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Least Square ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Holding Period ◽  
The Impact

The Working Capital Management (WCM) has an important role for the firm’s success or failure, because it directly affects the overall business health of the firm. This study examined the impact of WCM on profitability and shareholders’ wealth using 50 companies listed in different sectors on the Colombo Stock Exchange (CSE) for the period from 2010 to 2015. This sample represents 47% of the selected sectors of CSE. The profitability of the company is measured using gross operating profit (GOP) and shareholders wealth measured by Tobin’s Q (TQ) ratio. The WCM is measured using five independent variables namely stock holding period (SHP), debtors’ collection period (DCP), creditors’ settlement period (CSP), cash conversion circle (CCC) and current assets ratio (CAR). Further, three additional variables such as firm size (SIZE), leverage (LEV) and earning yield (EY) are employed as controlling variables to capture the impact of other performance of the companies.The data were analyzed using ordinary least square (OLS) and panel data regression models. These regression models reveal that there is a significant negative relationship between CCC and dependent variables (GOP & TQ). Further, this relationship has been confirmed by the major components of CCC such as SHP, DCP. Firm size also positively and significantly effects on the firm GOP while negatively effects on the TQ. Further, they revealed that there is a significant positive relationship between LEV and TQ. The study finds that the shareholders’ wealth and profitability can be increased through the efficiency of WCM.

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