This research is focusing on working capital management and its effects on profitability for a sample of pakistani firms the main objectives are: • to establish a relationship between working capital management and profitability over a period of six years for 94 pakistani companies listed on. That working capital management is significant part of corporate finance because it has effect on profitability and liquidity after in 2011 they again conduct this research to examine the effects of working capital management. Specifically, the sri lankan manufacturing sector is faced with the dilemma of maintaining an appropriate trade-off between working capital (wc) and profitability in this study an attempt has been made to identify the impact of wc management on profitability of listed manufacturing companies.
Working capital management is considered to be a very important element to analyze the organizations’ performance while conducting day to day operations, by which balance can be maintained between liquidity and profitability. The scientific world journal is a peer-reviewed, open access journal that publishes original research, reviews, and clinical studies covering a wide range of subjects in science, technology, and medicine. For analysis of data, software spss used the results of the regression hypothesis suggests that between working capital management and performance management is a meaningful relationship and selection policy aggressively financing and investment in working capital will lead to improved management companies.
Article type full length research article thus the study analyzed the effects of working capital management on the profitability of manufacturing firms listed on the nairobi securities exchange diagnostic research design was management of working capital has profitability and. Working capital management efficiency directly affects the profitability and liquidity of firms therefore, efficient management of working capital is a fundamental part of the overall corporate strategy to create shareholder value. Working capital management on the profitability of firms: case of listed pakistani companies”, investigated the relationship between measures of working capital management and the corporate profitability of the non-financial firms. This research project seeks to critically examine the impact of working capital management on the profitability of manufacturing firms in the multi currency environment in zimbabwe using the case of smart bags (pvt) ltd.
Many research works have been undertaken by various authors on working capital management: the followings are interesting and useful for this research: eljelly (2004), examined the relation between profitability and liquidity, as measured by current ratio and cash gap (cash conversion. This article aims to investigate the relationship between working capital management and firm performance in an emerging market the analysis is done over a long window spanning across 2000–2014 by using ordinary least square (ols), fixed- and random-effects model and generalized method of moments. Working capital management is the management of short-term assets and liabilities to ensure the most financially efficient operation of the company. The recent economic downturn of 2007–2008 has brought renewed focus on working capital policies in this paper we examine the role of business cycles on the working capital–profitability relationship using a sample of finnish listed companies over an 18-year period. Whereas, ganesan (2007) analyze the efficiency of the working capital management for the telecommunication equipment industry and used dayâ€™s sales outstanding, days inventory outstanding, day payable outstanding, dayâ€™s working capital, and current ratio to represent the working capital management efficiency.
The effective working capital management and profitability of company also, the results of the study show that management can enhance the profitability of company through minimizing cash conversion cycle and the. Five working capital management strategies with the release of the 2015 rel working capital survey results, here is a collection of five classic articles on working capital best practices. Dr bhayani (2004) has conducted study on working capital and profitability of cement industry and found that profitability is highly influenced by working capital and linkage between asset management and profitability of indian industry.
Of working capital management on sme profitability”, they took a sample of 8,872 small and medium-sized spanish firms for the period 1996-2002 for the purpose of constructing an empirical relationship between wcm. Uncovering cash and insights from working capital although working capital management has long been a business-school staple, our research shows that performance is surprisingly variable, even among companies in the same industry (exhibit) 00:00 audio uncovering cash and insights from working capital. Study aims at examining the statistical significance between company’s working capital management and profitability in light of this objective the study adopts quantitative approaches to test a series of research hypotheses.
Zubair arshad and muhammad yasir gondal, “impact of working capital management on profitability a case of the pakistan cement industry”, interdisciplinary journal of contemporary research in business, vol 5, no 2, 2013, pp 384-390. Effect of working capital management on profitability of pharmaceutical industry in pakistan muhammad khurram shabbir mcom regno mcm05111086 mcom submitted to malik qamar nawaz (head of the department) a proposal in partial fulfilment of the requirements for the degree of mcom department of lahore school of accountancy and finance the university of lahore, islamabad campus acknowledgement.
The effects of working capital management on the shaskia g soekhoe profitability of dutch listed firms 2 abstract purpose: the objective of this study is to establish the relationship between working capital management and profitability over a period of five years for dutch listed firms. Working capital management and financing decision: synergetic effect on corporate profitability solabomi o ajibolade that only minimal research efforts have been corporate profitability working capital management corporate financing profitability 2 4-, ---+ + + + + ). Capital management on profitability of top world leading beer brewers this research while focusing on working capital management (as measured by the cash conversion cycle (ccc) and it’s influence on profitability aims at establishing a relationship between firms. The relationship between liquidity and profitability the management of working capital is the part of the financial management responsible for the control of the gross current assets, which includes the firm’s cash, account between high amounts of net working capital and maximizing profitability this.