Turnover Ratio
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2021 ◽  
Vol 7 (11) ◽  
pp. 248-253

Research relevance: in this article, based on the actual materials of the construction company, an analysis of current assets was carried out, their efficiency of use was calculated, as well as the liquidity ratio. Research materials and methods: the authors has given their own definition of the concept current assets. Research objectives: analysis of current assets, reflected in a separate subsection of the Asset section of the balance sheet. Research results: the calculated coefficients indicate that, compared to last year, the work of construction companies has deteriorated since the turnover in days increased by 146.66 days and the turnover ratio decreased by 3.53 (turnover); the load factor increased by KGS 0.41. Conclusions: based on the results of the analysis, recommendations were given to the management of the enterprise.

2021 ◽  
pp. 231971452110534
Isha Gupta ◽  
T. V. Raman ◽  
Naliniprava Tripathy

This article aims to examine the impact of mergers and acquisitions (M&A) on the financial performance of the construction and real estate industry, using the broad spectrum of financial ratios. The period of study is from 2011 to 2020, and paired t-test methodology has been used. It is hypothesized that there is a significant difference in the pre-M&A period and post-M&A period. The study findings conclude that profitability ratio and liquidity ratio have improved significantly, whereas leverage ratio exhibits no change in performance. In the efficiency ratio, the fixed-assets turnover ratio substantially improves, but the total asset turnover ratio and current asset turnover ratio show a slight improvement. The study concludes that the Indian construction and real estate company’s financial performance has improved overall for the acquiring firms during the post-M&A period. The study implies that the construction sector supports the synergy hypothesis, stating that M&A will improve synergy during the post-M&A period because of the consolidation of two firms’ resources.

2021 ◽  
Vol 5 (13 (113)) ◽  
pp. 44-57
Zarina Poberezhna

The improvement of theoretical and methodological approaches to the formation of innovativeness of business processes of enterprises has been carried out. A model of innovativeness of business processes has been formed, which takes into account the principles, goals, methods of improving the management of business processes and the factors of influence on them. The main directions of the formation of an effective business model of an aviation enterprise based on the innovativeness of business processes are investigated and strategic directions of its provision are proposed. At the same time, the following aspects of enhancing the innovative activity of an aviation enterprise are highlighted as: the influence of the external and internal environment, innovative activity, analysis of the innovative potential and innovativeness of business processes. An integrated approach to assessing the effectiveness of the business model of an aviation enterprise based on the innovativeness of business processes has been formed. This approach allows to provide the necessary level of innovative flexibility of the aviation enterprise and independence in the application of innovative business processes. The author has carried out a practical implementation of the applied approach at aviation enterprises. The study made it possible to identify the most important business processes for aviation enterprises. These include: the level of support (provision) of innovation, the turnover ratio of current assets, the provision of material and technical resources. As a result of the assessment, these business processes have the highest scores (4.55; 4.43 and 4.26, respectively). The assessment of the financial stability of aviation enterprises in the market was carried out and the indicators of the assessment were calculated. An integral indicator of the financial stability of aviation enterprises has been determined, according to which the problems of the effective functioning of Ukrainian aviation enterprises have been identified. At the same time, small aviation enterprises suffer losses and are characterized by a low level of financial stability

2021 ◽  
Vol 11 (5) ◽  
pp. 80-89
Dr. Sudip Chakraborty ◽  
Shilpi Kumari

The automobile industry in India is one of the speedily growing industry. Working Capital Management is important in this industry due to increasing demand and huge investment in this sector requires proper management. Working Capital Management perform a vital role in the success and failure of a business due to its effect on the performance and liquidity. Thereby this study has been undertaken to Comparative analyse working capital management of Tata Motors Limited and Maruti Suzuki India Limited for the period of seven years from 2013-14 to 2019-20.  In this study three objectives are set for research. The first one was to assess the impact of working capital on sales, second was to assess the impact of working capital on profitability and third was to evaluate the working capital performance of the companies under study through the use of various financial ratios. The study reflects that the efficiency of working capital management of the companies is influenced by the Liquidity Ratios, Debtor Turnover Ratio, Inventory Turnover Ratio and profitability Ratio.

2021 ◽  
Vol 8 (3) ◽  
pp. 131-138
Ashok Kumar Panigrahi ◽  
Kushal Vachhani

The financial performance of the top two companies of the FMCG sector HUL and ITC are analyzed in this research paper by using the two most popular financial tools of analysis i.e., ROE and ROA. Similar to the DuPont method, components of Return on Equity (ROE) and Return on Asset (ROA) are segregated to do the analysis of financial performance and to accomplish the objective. To calculate ROE and ROA, ratios such as net profit ratio (NPR), total asset turnover ratio (TATR), and equity multiplier (EQM) will be used. It is observed that the use of financial leverage was mainly responsible for the whole decrease in return on equity (ROE). In terms of return on equity, we found that the Asset Turnover Ratio increases somewhat, while in the case of ITC, the ratio either remains the same or slightly decreases in value. As a result, HUL's total asset turnover ratio (TATR) is greater than that of ITC, suggesting that HUL is more efficient in its asset use. We were able to demonstrate statistically, via the use of the One-way Anova test, that there is a significant meaningful association among the ratios.

2021 ◽  
Sha Zhang ◽  
Fang Chen

Abstract The new energy vehicle enterprises is a strategic emerging industry in China, so more and more government subsidies to promote innovative development are being accepted by new energy vehicle enterprises. What is the innovation efficiency of new energy vehicle enterprises receiving government subsidies? With the acceleration of the process of global economic financialization, whether financial support can promote the innovation efficiency of government subsidies and how enterprises should allocate financial assets have become issues that need to be deeply considered. Based on the annual report data of China's domestic listed new energy vehicle enterprises from 2015 to 2020, the relationship between government subsidies and enterprise innovation efficiency is empirically tested, and the impact of financial support on enterprise R&D innovation efficiency is investigated. The empirical results show that government subsidies are wasteful and fail to effectively promote R&D innovation, and the innovation efficiency of government subsidies is positively influenced by firm nature and firm age, while the total asset turnover ratio, operating cycle and firm size have a negative impact on innovation efficiency. Further research found that there is an inverted U-shaped relationship between financial support and the innovation efficiency of government subsidies. A certain degree of financial support has a positive impact on the innovation efficiency of government subsidies, but excessive financial support has a negative impact on the innovation efficiency of government subsidies. The conclusion provides empirical evidence for the Chinese government to improve the subsidy policy and standardize the development of new energy vehicle enterprises, and has a certain reference value for guiding new energy vehicle enterprises to reasonably allocate financial support.

2021 ◽  
Vol 6 (3) ◽  
pp. 38
Edwin Agus Buniarto

Abstract This study aims to determine the effect of working capital turnover, liquidity and solvency on profitability in food and beverage sub-sector companies in the Indonesian Capital Market for the 2016-2020 period. Working capital turnover variable is calculated using the Working Capital Turnover ratio, liquidity is measured using Current Ratio, solvency is measured using Debt to Assets Ratio and Profitability is measured using Return on Assets. This type of research is quantitative using the classic assumption test, multiple linear regression analysis and partial test. The sampling technique uses the purposive sampling method. The results of the analysis that have been done, show that the working capital turnover, liquidity and solvency significantly influence the profitability of the company.  This is evidenced by the results of correlation analysis which shows the value of r = 0.831 which means there is a strong relationship between working capital turnover, liquidity and solvency to profitability. Partially, each independent variable significantly influences profitability.   Keywords: Working Capital Turnover, Liquidity, Solvency, Return on Assets    

F1000Research ◽  
2021 ◽  
Vol 10 ◽  
pp. 905
Venny Sin-Woon Chong ◽  
Ming Ming Lai ◽  
Lee Lee Chong

Background: The evolution of the mutual funds industry has changed investors’ perspective. Instead of just focusing on which fund performances are best, investors pay great attention to who is managing and delivering superior returns in their investment portfolios. Nonetheless, it is very scant of comprehensive studies concern with human capital managerial characteristics that link with fund performances. Hence, this study proposes the integration of fund performances, managerial characteristics, systematic risk, expense, and turnover ratio, with single and simultaneous equations based on asset pricing models. Methods: Using a sample of Malaysian fund managers, data from fund management companies, Thomson One database, and fund master prospectus over the periods of January 2012 to December 2014, the fund performance was measured using Jensen alpha (CAPM single factor), and Fama and French three-factor model on single and simultaneous equations. The examination was further carried out by employing the ordinary least squares and three-stage least squares methods. Results: The results suggest that for fund managers, holding a business degree was the key factor to determine the fund performance, while having Master’s degree was not the primary concern. Fund performance and risk behavior varied across fund managers of different gender. Conclusions: The expense ratio, turnover ratio, and fund objective were significantly correlated with fund performance. This study provides ultimate implications for fund management companies, when it comes to the efficient allocation of human capital. Fund management companies should focus more on the team-managed funds phenomenon, instead of on single-managed funds. Overall, this study provides significant guidance for the Malaysian Securities Commissions and fund management companies, to develop a more competent funds market in Malaysia. Specifically, by strengthening the fund industry policies, the typical agency problems, such as too-high managerial expenses, and excessive risk-taking can be alleviated.

Mohamed Ali Abdinur ◽  

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.

2021 ◽  
Vol 2 (1) ◽  
pp. 46-57
Subarna Ershad ◽  
Md. Minhaz Uddin ◽  
Md. Omar Faruk

This paper aims to analyze the financial performance of industries of Bangladesh, which are performing a crucial role in the current economic development trend of the country. Heidelberg Cement Bangladesh Ltd, Crown Cement, Lafarge Holcim and Meghna Cements are selected for analysis for their 70% of market share coverage of the cement industry. Competency of selected leading four cement companies are looked over here with some financial parameters like Return on Asset (ROA), Return on Equity (ROE), Earnings Per Share (EPS), Total Debt Ratio (TDR), Current Ratio (CR), Net Working Capital Ratio (NWCR), Assets Turnover Ratio (ATR) and mean value analysis technique. In preferred financial parameters and mean value analysis technique Heidelberg Cement Bangladesh Ltd has a good position, and in most cases, Meghna Cements obtained the lowest score. To attain desired efficacy in the cement industry of Bangladesh shortly, some prime recommendations such as reduction of production cost, prioritization on economies of scale, and business augmentation have come up here.

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