Effects of Working Capital Management on Profitability of Manufacturing Firms of Pakistan

Iqbal, Aqsa; Ullah, Abrar; Wang, Zhuquan; Shah, Said

doi:10.1166/asl.2017.9856

Cited by 3 publications

(5 citation statements)

References 6 publications

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“…There are different findings about the impact of receivables on the profitability of the enterprise. Most studies show a negative correlation between receivables and the profitability of enterprises from the manufacturing industry, such as Perković (2012), Iqbal et al (2017), Hossain (2020), Goncalvez, Gaio, and Robles (2018), Hameer, Ramakrishnan, and Gillani (2021), Kušter (2022). But there were also authors who, in their research, determined a positive correlation between days sales outstanding and the profitability of enterprises in the manufacturing industry, such as Jakpar et al (2017), Golas (2020), Amponsah-Kwatiah and Asiamah (2020), Pham, Nguyen and Nguyen (2020), Fejzullahu and Govori (2021), Alvarez, Sensini, and Vazquez (2021).…”

Section: Days Sales Outstanding and The Profitability Of Manufacturin...mentioning

confidence: 99%

“…An analysis of the literature, which comprises research that includes the analysis of working capital management in certain industries, diagnosed that the most prevalent is the manufacturing industry (Chakraborty 2008;Perković 2012;Uremadu, Egbide, and Enyi 2012;Almazari 2014;Jakpar et al 2017;Iqbal et al 2017;Utia, Dewi, and Sutisna 2018;Kafeel Ali et al 2020;Aytac et al 2020;Prša 2020;Amponsah-Kwatiah and Asiamah 2020;Hossain 2020;Golas 2020;Pham, Nguyen, and Nguyen 2020;Olaoye and Okunade 2020;Arnaldi et al 2021;Hameer, Ramakrishnan and Gillani 2021;Fejzullachi and Govori 2021;Aldubhani et al 2022;Kušter 2022 and others).…”

Section: Introductionmentioning

confidence: 99%

“…, Amponsah-Kwatiah and Asiamah (2020),Hogerle et al (2020),Hossain (2020), Kafeel Ali et al (2020,Kayani, De Silva and Gan (2020),Pham, Nguyen and Nguyen (2020),Golas (2020) andAlvarez, Sensini and Vazquez (2021) found a positive correlation between the days payable outstanding on the profitability of manufacturing enterprises, whilePerković (2012),Uremadu, Egbide and Enyi (2012),Seyoum, Tesfay, and Kassahun (2016),Iqbal et al (2017), Fernandez-Lopez, Rodeiro-Pazos, and Rey-Ares (2020), Prša (2020),Arnaldi et al (…”

mentioning

confidence: 97%

“…and cash conversion cycle(Perković 2012;Banos-Caballero, Garcia-Teruel and Martinez Solano 2014;Golas 2020;Aytac et al 2020;Olaoye and Okunade 2020).The dependent variable that is most often used to measure profitability is return on assets ROA (Garcia-Teruel and Martinez-Solano 2007; Uremadu, Egbide, and Enyi 2012;Gul et al 2013;Enqvist, Graham, and Nikkinen 2014;Iqbal, et al 2017;Pham, Nguyen, and Nguyen 2020; Amponsah-Kwatiah and Asiamah 2020; Fernandez-Lopez, Rodeiro-Pazos, and Rey-Ares 2020;Hossain 2020;Golas 2020;Kafeel Ali et al 2020;Hameer, Ramakrishnan and Gillani 2021; Kušter 2022 and others). Different variables are used to calculate return on assets (ROA) indicator.…”

mentioning

confidence: 99%

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The Influence of Working Capital Management on the Profitability of Manufacturing Enterprises - The Case of Croatia

Stanić,

Cita,

Šulentić

2023

South East European Journal of Economics and Business

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The aim of this research is to examine the relationship between working capital management and the profitability of Croatian manufacturing enterprises and to provide empirical evidence on the effects of working capital management on the level of profitability of manufacturing enterprises in the Republic of Croatia in the period from 2018 to 2021. The collected data were analyzed through multiple regression analysis, using a panel regression model with random effects. By analyzing panel data, the impact of receivables from customers, inventories, liabilities to suppliers, sales growth and GDP growth on the profitability of Croatian manufacturing companies was examined. The analysis of panel data examined the impact of trade receivables, inventories, payables, sales growth and GDP growth on the profitability of Croatian manufacturing enterprises. The obtained results also suggest that the variables the days sales outstanding, the days inventory outstanding and GDP growth are not statistically significant.

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Section: Days Sales Outstanding and The Profitability Of Manufacturin...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 97%

mentioning

confidence: 99%

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The Influence of Working Capital Management on the Profitability of Manufacturing Enterprises - The Case of Croatia

Stanić,

Cita,

Šulentić

2023

South East European Journal of Economics and Business

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“…Profitabilitas perusahaan dapat dipengaruhi oleh manajemen modal kerjanya (Iqbal et al, 2017;Lazaridis & Tryfonidis, 2006;Mathuva, 2010;Yazdanfar & Ohman, 2014). Manajemen modal kerja merupakan indikator bagaimana modal kerja perusahaan dikelola secara efisien untuk memaksimalkan laba perusahaan (Said & Mande, 2020).…”

Section: Pendahuluanunclassified

Hubungan Antara Cash Conversion Cycle Dan Growth Opportunity Dengan Profitabilitas

Agustin

Suryani

2022

JEB

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Profitabilitas menjadi indikator dalam pengembangan perusahaan dengan perolehan pendapatan dalam mengelola operasi perusahaan. Perusahaan berupaya mempertahankan dan meningkatkan profitabilitas untuk mengukur kinerja perusahaan dengan meningkatkan efisiensi manajemen modal kerjanya. Penelitian ini menyelidiki pengaruh manajemen modal kerja melalui cash conversion cycle dan growth opportunity melalui sales growth terhadap profitabilitas perusahaan. Penelitian ini dilakukan pada 91 perusahaan sektor industri barang konsumsi di Indonesia dari tahun 2015 hingga 2020. Pengujian hipotesis dari 489 data dilakukan dengan analisis regresi data panel dengan model random effect. Hasil penelitian menunjukkan bahwa CCC dan growth opportunity tidak berpengaruh signifikan terhadap profitabilitas. Temuan ini menunjukkan bahwa perusahaan sektor barang konsumsi perlu melakukan pertimbangan mengenai pengelolaan manajemen modal kerja yang menjadi bagian dalam operasional perusahaan secara efisien, sehingga perusahaan dapat memaksimalkan keuntungan perusahaan.

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Importance of Working Capital Management and Its Components for Firm Profitability

Toušek,

Hinke,

Gregor

et al. 2023

Prague Economic Papers

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The current situation of slower economic growth is leading to a more difficult access to funds and unpredictable payment behaviour of customers, which predetermines growing importance of working capital management. The aim of the present article is to examine the effects of working capital investment and its components (inventories, accounts receivable, accounts payable and cash) on the firm's performance in the case of non-cyclical and cyclical industries in the Czech Republic. The underlying dataset comprises corporate data of 293 firms from 2010 to 2018. The calculations reveal that both industries applied over the period a very similar conservative working capital management strategy consisting in increasing working capital investment accompanied by simultaneous development of all its components. The results also indicate dissimilarities in the importance of working capital components with respect to the firm's performance. Cash seems to be the most important component, contrary to inventories, which are insignificant jointly for both industries. Accounts receivable and accounts payable are significant only for cyclical industry firms.

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Effects of Working Capital Management on Profitability of Manufacturing Firms of Pakistan

Cited by 3 publications

References 6 publications

The Influence of Working Capital Management on the Profitability of Manufacturing Enterprises - The Case of Croatia

The Influence of Working Capital Management on the Profitability of Manufacturing Enterprises - The Case of Croatia

Hubungan Antara Cash Conversion Cycle Dan Growth Opportunity Dengan Profitabilitas

Importance of Working Capital Management and Its Components for Firm Profitability

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