Applied Finance and Accounting · 2015 · 18 citations · 23 references
ManagementBusiness EconomicsFinanceCorporate FinanceInventory ManagementWorking Capital ManagementCapital Structure DeterminantsInventory Turnover AnalysisCorporate Cash HoldingsCorporate ProfitsCurrent Ratio ManagementInventory TurnoverInventory Turnover RatioProfitability DriversSecondary Data UseWorking Capital Management Systems
The paper examines the impact of working capital management on corporate profitability through the periods of 2008 to 2012. The total of seven firms listed on the floor of the Nigerian Stock Exchange was studied, using secondary data generated from annual reports and accounts of the sampled companies and the Nigerian Stock Exchange Fact book. The data were analyzed by means of descriptive statistics and GLS regression analysis using STATA 11. The study finds a positive relationship among Average Collection Period (ACP), Current Ratio (CR) and the size of the firm (LOGSIZE) with Profitability and a negative relationship with Inventory Turnover Period (ITP), Average Payment Period (APP). The paper therefore recommends that cash collected should be re-invested into short-term investment to generate profits and fund left idle in the cash or excessive liquidity is costly and do not lead to profitability.
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WORKING CAPITAL MANAGEMENT AND PROFITABILITY-CASE OF PAKISTANI FIRMS
Abdul Raheman, Mohamed Nasr · 2007 · 877 citations