Effect of Working Capital Management on Profitability of Bharti Airtel Limited

Khan, Asma; Choudhary, Anshu

doi:10.5958/2321-5763.2020.00015.3

Cited by 1 publication

(1 citation statement)

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“…The alternative hypothesis was accepted, which states that there is a significant relationship between WCM represented by accounts receivable, inventory, accounts payable and cash conversion cycle on OPM in the listed manufacturing companies on QSE with F-sig (0.000). This result agreed with the works of Firmansyah et al, (2018), Khan and Choudhary (2020) and Mehtap (2016) and differed with the study of Panigrahi (2012). Moreover, Model 1 identified a statistically significant negative (p < 0.05) relationship between AR and OPM, which indicated that the decrease in the number of days' collected from debtors would lead to…”

Section: Multiple Regression Analysissupporting

confidence: 77%

Impact of working capital management on profitability: evidence from listed companies in Qatar

Aldubhani

Wang

Gong

et al. 2022

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PurposeThis study aimed to find out whether working capital management policies affect the profitability of manufacturing companies listed on the Qatar Stock Exchange.Design/methodology/approachTo assess the working capital management and profitability relationship, the authors applied a multiple regression analysis methodology in all manufacturing companies listed on the Qatar Stock Exchange (ten firms) between 2015 and 2019. Average collection period, inventory turnover, average payment period and cash conversion cycle were adopted as proxies for working capital management, and profitability was measured by operating profit margin (OPM), return on assets (ROA), return on capital employed (ROCE) and return on equity (ROE).FindingsThe study found that companies with shorter receivables collection periods and cash conversion cycles are more profitable. Longer inventory turnover periods and accounts payable payment periods are related to higher profitability of the firms.Originality/valuePrevious studies have assessed the relationship between working capital management and profitability. However, this study is the first one to use these four variables combined (OPM, ROA, ROCE and ROE) to measure profitability; this is what was limited in previous studies. In comparison, the previous studies were not comprehensive in studying the impact of working capital management on profitability from all aspects of profitability's variables [operational (OPM), economic (ROA), capitalist (ROCE) and financial (ROE)]. However, this study focused on all these aspects to make the results of the study more accurate. Also, it is worth mentioning that this study is the first research performed on Qatar Stock Exchange, although Qatar has achieved remarkable progress in the industrial sector in recent years, making it one of the first industrialized countries in the Middle East.

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Section: Multiple Regression Analysissupporting

confidence: 77%