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Effect of Working Capital Management Policy on Firms' Profitability

 

Marketed By :  LAP LAMBERT Academic Publishing   Sold By :  Kamal Books International  
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  • Product Description
 
The management of working capital is very important to businesses of all sizes (Padachi, 2006).Thus, the purpose of this study is to examine the effect of working capital management policies on firms profitability. To investigate this issue, the researcher used audited financial statements of a sample of 22 manufacturing private limited companies in Addis Ababa, for the study period of 2006 to 2010. EViews 6 was used to undertake both correlation and regression analysis of cross-sectional and time series data. The results from the study show that, longer accounts receivable period and inventory holding periods are associated with lower profitability. A weak and negative relationship also exhibited between accounts payable period and profitability measures. A significant negative relationship between cash conversion cycle and profitability measures also recognized. In addition, findings show a significant positive relationship between current liabilities to total assets ratio and profitability. Managers, therefore, can increase firms? profitability by improving the efficiency of management of working capital investment and financing policies
Product Specifications
SKU :COC11013
AuthorNuru Mohammed
LanguageEnglish
BindingPaperback
Number of Pages100
Publishing Year10/09/12
ISBN978-3659268038
Edition1 st
Book TypeBanking & finance: study & revision guides
Country of ManufactureIndia
Product BrandLAP LAMBERT Academic Publishing
Product Packaging InfoBox
In The Box1 Piece
Product First Available On ClickOnCare.com2015-10-07 00:00:00