Working Capital
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2021 ◽  
Vol 12 (1) ◽  
pp. 389-407
Ronald Essel ◽  
Joyce Brobbey

The aim/purpose of this scientific inquiry is to empirically examine the impact of working capital management (WCM) [cash conversion cycle (CCC), number of days inventory (INV), number of days account receivable (AR), number of days account payable (AP)] and control variables [sales growth (GROW), size (SIZE), leverage (LEV), current ratio (CR) fixed financial assets to total assets (FFA)] on firm performance (FP) [ROA, Tobin’s Q (TQ)] in the context of an emerging economy, Ghana. The research used a dynamic panel System of Generalized Method of Moment (GMM) to test the hypotheses. Utilizing financial data extracted from final accounts of 36 listed companies, spanning 2010-2019, the study examined WCM-performance-nexuses by following the methodologies of researchers/scholars in extant literature. Findings/Results indicates that, whilst INV, AR, LEV demonstrated negative/inverse/indirect associations with FP; AP, GROW, SIZE, CR, FFA depicted positive/direct associations with FP. CCC however, exhibited a quadratic concave relationship with ROA.

2021 ◽  
pp. 10-15
M. Singh ◽  
R. S. Singh ◽  
K. P. Singh

The saving and investment pattern of different forms sample group was studied during 2014-16 and it was observed that large farm holders were able to save higher income than small farmers while lowest income group had negative savings. In respect of investment on different fixed assets, irrigation was on first priority, followed by purchase of milch animals, farms buildings and investment in land and its improvement. Investment on working capital amongst different cash inputs, hired human labourer accounted highest share (29.44 per cent), followed by manure & fertilizers (22.33 per cent), hired power tractor (16.96 per cent), irrigation (13.61 per cent) and seeds (13.50 per cent) to total cash inputs. Marginal farmers could not invest for nonfarm physical capital because of no savings with them. Small and large farmers groups invested in all the items in which it was highest in working capital (61.28 to 61.84 per cent), followed by investment in fixed capital (14.41 to 16.84 per cent), financial capital (12-14 per cent) and non-farm capital (7-12 per cent). The highest investment was made on working capital (69.02 per cent) by sample farmers. Current income was found to be the main source of finance in all income groups which accounted for 49.70 to 94.79 per cent share of the total investment followed by savings which shared for 40.10 to 49.12 per cent in total investment.

2021 ◽  
Vol 39 (12) ◽  
Beila Sehdev ◽  
T.V. Raman ◽  
Mahendra Ranawat

Predicting human behavior is a difficult task, yet bankers perform this regularly while sanctioning working capital loans, so that money advanced is recoverable. For this, they try to assess credit worthiness of clients based on past performance through financials and banking habits amongst other parameters. Clients also look at fees and instalment burden, duration of loan, etc. However, with the adverse impact of Covid pandemic on earning capacities, banks need to relook at the way they structure loans. This study suggests that customer-focused, risk-adjusted analysis should be undertaken to reduce non-performing assets and improve asset portfolio quality of banks.

2021 ◽  
Vol 3 (1) ◽  
pp. 45-63
Nischal Risal ◽  
Sangita Acharya

The objective of the research paper is to analyze the inventory management and the profitability of PE in Nepal. The descriptive and analytical research designs have been adopted in the study. The quantitative research approach has been used in the study. The population of the study is 37 public enterprises in Nepal. NFC, HPPC, and DDC are the samples taken based on purposive sampling method. The descriptive analysis, correlation analysis, and multiple regression analysis tools have been used in the study with seven years data from the years 2011AD to 2017AD. The variables used are CR, QR, CCC, ITR, ROA, ROE, OM, firm growth, and size of the firm. The results provide the negative and insignificant relationship between inventory turnover and liquidity ratios with profitability. The results concluded the negative and insignificant relationship with current assets, quick assets with profitability. CCC is found as insignificant positive relationship with profitability. Thus, the study concluded that PE in Nepal should manage their working capital efficiently to achieve the optimal profitability even though the study found no significant relationship of inventory management on the profitability of PEs in Nepal. The study highly recommend to not to ignore the inventory management by Nepalese public enterprises.

Dedek Kurniawan Gultom ◽  
Bahril Datuk ◽  
Mei Indriani

This research was conducted with the aim of knowing the effect of the Current Ratio, Debt to Assets Ratio and Working Capital Turnoveron Return On Assets in plastic and packaging companies listed on the Indonesia Stock Exchange. The population in this study is all plastic and packaging company listed on the Indonesia Stock Exchange while the sample that meets the criteria for sampling observations carried out for seven years and as many as six yearsplastic and packaging company listed on the Indonesia Stock Exchange. This research approach uses associative research.Data collection techniques in this study using documentation techniques. cand the analysis technique used is multiple linear regression analysis, hypothesis testing and coefficient of determination. The results showed that the independent variables in this study had a simultaneous effect on Return On Assets. While the partial test proves the Cuirrent Ratio variable has a significant effect on Return On Assets, while partially proves the Debt to Assets Ratio variable andWorking Capital Turnover does not have a positive effect on Return On Assets in plastic and packaging companies listed on the Indonesia Stock Exchange.

2021 ◽  
Vol 16 (12) ◽  
pp. 17
Salah Mohamed Eladly

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).

2021 ◽  
Vol 2 ◽  
pp. 362-371
Sulistyani Budiningsih ◽  
Rahmi Hayati Putri

Research objectives: 1) Identify internal factors (strengths-weaknesses) and external (opportunities-threats) that affect the home marketing mix of coconut sugar industry in Jeruklegi District. 2) Analyzing alternative marketing mix strategies for the coconut sugar home industry in Jeruklegi District. 3) Analyzing the best marketing mix strategies that are priorities to be applied to the coconut sugar home industry in Jeruklegi District. The method used is a descriptive method with the research location in Jeruklegi District which was determined intentionally (Purposive Sampling) with certain selection considerations. Involving 25 respondents of coconut sugar craftsmen. The formulation of the home marketing mix strategy for the coconut sugar industry was analyzed by SWOT (Strengths, Weaknesses, Opportunities, Threats). (Rangkuti, 2006). The results showed that internal factors were the availability of coconut trees, coconut sugar production activities were carried out continuously, the location of the coconut sugar processing business was quite strategic, the price of coconut sugar products was able to compete, the availability of experienced workers in the coconut sugar processing business, ownership of business capital. craftsmen independently, limited number of coconut trees, product quality does not yet have uniformity (taste, color and shape), lack of marketing information sources, level of production and packaging technology is still traditional, limited working capital of craftsmen, craftsmen have not done bookkeeping management and there is no group / cooperative. The position of the coconut sugar home industry in the Jeruklegi District, Cilacap Regency is in the Aggressive Region with the main strategy being the SO strategy, namely 1) Optimizing geographical conditions that support the agroclimate of natural resources and human resources of craftsmen in producing coconut sugar products continuously with competitive prices for coconut sugar products, 2) Optimizing production activities continuously in order to capture high market share opportunities both domestically and internationally with competitive prices as substitute products through partnership relationships between coconut sugar producers.

2021 ◽  
Vol 5 (2) ◽  
pp. 151
Ahmad Anshori ◽  
Candra Yuliana

The effect of planning on construction projects will have an impact on income within the project itself. Usually, the realization of work plans in the field often experiences delays in the process, because the number of revenue was determined by the method of payment stipulated in the construction contract. Payment system aspects affect the working capital that needs to be provided by the contractor. Therefore, the role of planning the flow of cash flow is very substantial in the implementation of the project. The purpose of this study is to get a cash flow plan with a Monthly Payment system and Progress Payment system based on the project schedule of the Road Works-Road Widening On Kurnia Street North Landasan Ulin Banjarbaru. The method used to analyze the data is project scheduling by making the description and sequence each activity, determining the duration for each project work, and making a project network diagram using the PDM Method ( Precedence Diagram Method ). Then make a cash flow analysis with monthly payment system and progress payment with three payments, at cumulative progress 30.04%, 70.28%, and 100% on the conditions of EST ( Earliest Start Time ) and LST ( Latest Start Time ) schedule. The results of the data analysis show that the payment system that provides maximum benefits is the Monthly Payment system using a 20% down payment on the EST ( Earliest Start Time ) and LST ( Latest Start Time ) schedule conditions with a total loan of Rp. 653,000,000, the contractor gets a profit of Rp. 490,990,222 with a percentage of profits of 8,892%. 

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