This particular study tries to assess the nature of relationship of Working Capital Management (WCM) and liquidity with firm’s performance. Most important issue for the firms is to decide the best suitable level of working capital which can satisfy both motives f liquidity and profitability. Financial performance is measured by return on capital employed while determinants of working capital and liquidity includes inventory turnover, accounts receivable turnover, current and quick ratio. A sample of 19 cement companies listed on Karachi Stock Exchange for a period of 2005 to 2010 has been taken out off 29 firms on the basis of availability of data. Finally outcomes of bivariate analysis suggested that efficient management of working capital and liquidity leads to financial success
This paper investigates the relationship between working capital management and financial performance of Pharmaceuticals and Textile firms listed at the Dhaka Securities Exchange in Bangladesh. The data analysis was carried on ten Pharmaceuticals and Textile firms for a period of 2013 to 2017. Secondary Data was analyzed by applying Descriptive Statistics, Regression and Correlation analysis to findthe relationship of current ratio, inventory conversion period and average payment period with Return on Asset. The findings indicate that the Pharmaceuticals and Textile firms’ performance is influenced by the variables relating to working capital. There is a positive relationship between profitability and current ratioand Inventory Turnover period shows a negative relationship with profitability but Average payment period shows insignificant impact on profitability. The study concludes that there exists a relationship between working capital managementand financial performance of Pharmaceuticals and Textile firms in Bangladesh. The study recommends that for the Pharmaceuticals and Textile firms to remain profitable, they should employ working capital management practice that will help in making decisions about investment mix and policy, matching investment to objective, asset allocation for institution and balancing risk against profitability.
Working Capital Management and Bank profitability in GhanaSamuel Agyei
This document examines the relationship between working capital management practices and profitability of banks in Ghana. It reviews previous empirical studies that have mostly found efficient working capital management, like reducing cash conversion cycles and accounts receivable periods, improves firm profitability. The study uses panel data and random effects techniques to analyze this relationship for Ghanaian banks. Preliminary findings contradict some prior studies by showing cash operating cycles and debtors collection periods positively relate to bank profitability, while creditors payment periods negatively relate to it. The study aims to inform bank managers and policymakers on effective working capital strategies.
This document summarizes a study that investigates the influence of working capital management on the performance of small and medium enterprises (SMEs) in Pakistan from 2006 to 2012. The study uses data from various sources on SMEs to examine the relationship between return on assets (used as a proxy for profitability) and variables like accounts receivable, inventory, cash conversion cycle, and accounts payable. The results suggest that days of accounts payable has a positive association with profitability, while average collection period, inventory turnover, and cash conversion cycle have an inverse relationship with performance. Firm size and sales growth also positively influence profitability, while debt ratio negatively impacts profitability.
Working Capital Management and Cash Position of Banks in GhanaSamuel Agyei
This document summarizes a study on the relationship between working capital management and cash holdings of banks in Ghana. The study analyzed panel data from 10 Ghanaian banks from 1999-2008. The results showed that longer debtor collection periods, longer cash conversion cycles, higher capital structure, and larger bank size were significantly negatively related to bank cash positions. Meanwhile, longer creditor payment periods and higher profitability were significantly positively related to bank cash positions in Ghana. The document provides background on working capital management, cash holdings, and regulation of the Ghanaian banking sector. It also reviews theories and prior empirical research on factors influencing firm cash levels and working capital management.
The main objective of this paper such as the Karachi Stock Exchange market development working capital management (WCM) on firm performance is to determine the impact. In this paper the chemical industry for the period 2009-2014 to 6 years for a sample of 22 firms Karachi Stock Exchange (KSE) working capital management and firm performance of different variables used for analysis . Working Capital Management to measure the variables that were used in this study are the number of recovery days , days in inventory and size , leverage , inventory , equity , sales and gross domestic product (GDP) numbers are control variables. Firm performance measure used in this study for the dependent variable is the return on assets. Firm size is positively affected by the firm’s profits. Firms whose profits are high, their working capital firms are not interested in management and firm performance. The result of the study and working capital is negative relationship between firm performance shows. Is a positive relationship between size and profitability? Firm size is increased or decreased profit increased or decreased respectively. Moreover, profits and principles that support the pecking order used by firms are negative relationship between debts.
Working capital management and cash holdings of banks in ghanaAlexander Decker
This document summarizes a study on the relationship between working capital management and cash holdings of banks in Ghana. The study analyzed panel data from 10 Ghanaian banks from 1999 to 2008. The results showed that longer debtor collection periods, longer cash conversion cycles, higher capital structure, and larger bank size were significantly negatively related to bank cash holdings. Meanwhile, longer creditor payment periods and higher profitability had a significantly positive relationship with bank cash holdings. The findings provide insights for bank managers and policymakers on how to effectively manage working capital to ensure adequate liquidity.
Effect of working capital on profitability in indian markets and concept of z...mvkdel
This document provides an analysis of the relationship between working capital management and profitability for Indian companies from 2005-2010. It discusses key concepts around working capital, including how it refers to current assets and liabilities required for short-term financing. Prior research has shown that both excessive and low levels of working capital can negatively impact profitability. The document reviews literature on working capital management and profitability relationships. It aims to contribute to understanding how working capital management impacts profitability to help managers make decisions that create shareholder value, especially in emerging markets like India.
Nwankwo, odi an empirical analysis of corporate survival and growth ijsaid ...William Kritsonis
This document summarizes a research paper on efficient working capital management and its importance for corporate survival and growth. The paper examines how working capital, including current assets and current liabilities, must be efficiently managed to ensure companies can meet daily financial obligations and remain competitive. Inefficient working capital management can lead to excess inventory, inability to pay bills on time, and idle cash. The paper recommends that financial managers understand sources of working capital and opportunities to temporarily invest idle funds. When companies efficiently manage working capital, they have greater chances of long-term profitability and liquidity.
This paper investigates the relationship between working capital management and financial performance of Pharmaceuticals and Textile firms listed at the Dhaka Securities Exchange in Bangladesh. The data analysis was carried on ten Pharmaceuticals and Textile firms for a period of 2013 to 2017. Secondary Data was analyzed by applying Descriptive Statistics, Regression and Correlation analysis to findthe relationship of current ratio, inventory conversion period and average payment period with Return on Asset. The findings indicate that the Pharmaceuticals and Textile firms’ performance is influenced by the variables relating to working capital. There is a positive relationship between profitability and current ratioand Inventory Turnover period shows a negative relationship with profitability but Average payment period shows insignificant impact on profitability. The study concludes that there exists a relationship between working capital managementand financial performance of Pharmaceuticals and Textile firms in Bangladesh. The study recommends that for the Pharmaceuticals and Textile firms to remain profitable, they should employ working capital management practice that will help in making decisions about investment mix and policy, matching investment to objective, asset allocation for institution and balancing risk against profitability.
Working Capital Management and Bank profitability in GhanaSamuel Agyei
This document examines the relationship between working capital management practices and profitability of banks in Ghana. It reviews previous empirical studies that have mostly found efficient working capital management, like reducing cash conversion cycles and accounts receivable periods, improves firm profitability. The study uses panel data and random effects techniques to analyze this relationship for Ghanaian banks. Preliminary findings contradict some prior studies by showing cash operating cycles and debtors collection periods positively relate to bank profitability, while creditors payment periods negatively relate to it. The study aims to inform bank managers and policymakers on effective working capital strategies.
This document summarizes a study that investigates the influence of working capital management on the performance of small and medium enterprises (SMEs) in Pakistan from 2006 to 2012. The study uses data from various sources on SMEs to examine the relationship between return on assets (used as a proxy for profitability) and variables like accounts receivable, inventory, cash conversion cycle, and accounts payable. The results suggest that days of accounts payable has a positive association with profitability, while average collection period, inventory turnover, and cash conversion cycle have an inverse relationship with performance. Firm size and sales growth also positively influence profitability, while debt ratio negatively impacts profitability.
Working Capital Management and Cash Position of Banks in GhanaSamuel Agyei
This document summarizes a study on the relationship between working capital management and cash holdings of banks in Ghana. The study analyzed panel data from 10 Ghanaian banks from 1999-2008. The results showed that longer debtor collection periods, longer cash conversion cycles, higher capital structure, and larger bank size were significantly negatively related to bank cash positions. Meanwhile, longer creditor payment periods and higher profitability were significantly positively related to bank cash positions in Ghana. The document provides background on working capital management, cash holdings, and regulation of the Ghanaian banking sector. It also reviews theories and prior empirical research on factors influencing firm cash levels and working capital management.
The main objective of this paper such as the Karachi Stock Exchange market development working capital management (WCM) on firm performance is to determine the impact. In this paper the chemical industry for the period 2009-2014 to 6 years for a sample of 22 firms Karachi Stock Exchange (KSE) working capital management and firm performance of different variables used for analysis . Working Capital Management to measure the variables that were used in this study are the number of recovery days , days in inventory and size , leverage , inventory , equity , sales and gross domestic product (GDP) numbers are control variables. Firm performance measure used in this study for the dependent variable is the return on assets. Firm size is positively affected by the firm’s profits. Firms whose profits are high, their working capital firms are not interested in management and firm performance. The result of the study and working capital is negative relationship between firm performance shows. Is a positive relationship between size and profitability? Firm size is increased or decreased profit increased or decreased respectively. Moreover, profits and principles that support the pecking order used by firms are negative relationship between debts.
Working capital management and cash holdings of banks in ghanaAlexander Decker
This document summarizes a study on the relationship between working capital management and cash holdings of banks in Ghana. The study analyzed panel data from 10 Ghanaian banks from 1999 to 2008. The results showed that longer debtor collection periods, longer cash conversion cycles, higher capital structure, and larger bank size were significantly negatively related to bank cash holdings. Meanwhile, longer creditor payment periods and higher profitability had a significantly positive relationship with bank cash holdings. The findings provide insights for bank managers and policymakers on how to effectively manage working capital to ensure adequate liquidity.
Effect of working capital on profitability in indian markets and concept of z...mvkdel
This document provides an analysis of the relationship between working capital management and profitability for Indian companies from 2005-2010. It discusses key concepts around working capital, including how it refers to current assets and liabilities required for short-term financing. Prior research has shown that both excessive and low levels of working capital can negatively impact profitability. The document reviews literature on working capital management and profitability relationships. It aims to contribute to understanding how working capital management impacts profitability to help managers make decisions that create shareholder value, especially in emerging markets like India.
Nwankwo, odi an empirical analysis of corporate survival and growth ijsaid ...William Kritsonis
This document summarizes a research paper on efficient working capital management and its importance for corporate survival and growth. The paper examines how working capital, including current assets and current liabilities, must be efficiently managed to ensure companies can meet daily financial obligations and remain competitive. Inefficient working capital management can lead to excess inventory, inability to pay bills on time, and idle cash. The paper recommends that financial managers understand sources of working capital and opportunities to temporarily invest idle funds. When companies efficiently manage working capital, they have greater chances of long-term profitability and liquidity.
An Empirical Analysis on the Nature of Relationship between Capital Structure...iosrjce
The financing decision with regard to capital structure theory of finance has been a topic of many
theories and their conflicting output for past many years. This paper aims to analyse the nature of relationship
between the capital structure of a firm and its performance. The data of 40 firms excluding financial services
firms listed on Nifty indices on National Stock Exchange is studied (The composition of 50 firms on Nifty
represents a well branch out index reflecting precisely the overall market conditions). Financial services firms
have been excluded from purview of this paper, as they are in the business of collecting money and investing in
financial assets rather than producing goods, hence follow a unique business valuation model. Further financial
services sector being one of the most sensitive sectors. This paper analyzes a period of 13 years (2001-2014)
covering the phases of a business cycle starting from boom (2001/02-2006/07), recession (2007/08-2008/09)
and then recovery (2009/10-2013/14). The complete business cycle will aid to demonstrate the results more
accurately. This paper also surveys the topical developments in the empirical capital structure research. The
data for a period of 13 years is analysed using descriptive statistics, correlation and multiple regression
techniques. For research purpose, the ratios such as debt-equity ratio, debt-asset ratio and long term debt are
taken as independent variables whereas Net Profit, Net Profit Margin, ROCE, ROE and ROA are the ratios
taken as dependent variables.
Working capital management and profitability an empirical analysisIAEME Publication
This document summarizes a study examining the relationship between working capital management and profitability among Indian manufacturing firms. The study uses financial data from 1,198 manufacturing firms over a 5-year period. Correlation analysis found negative relationships between measures of working capital management (debtor's days, inventory days, creditor's days, cash conversion cycle) and firm profitability. Regression analysis will further examine these relationships to determine how adjusting elements of working capital management could impact profitability. The results aim to provide Indian manufacturers insights on variables that influence their profits.
This document summarizes a research study that examined the relationship between working capital management and profitability for non-listed firms in Ghana from 2004-2009. The study used cash conversion cycles and its components (days of receivables, days of inventory, and days of payables) as measures of working capital management. Gross operating profit to total assets was used as the measure of firm performance. The results showed that profitability was negatively related to the length of the cash conversion cycle. Specifically, performance was positively affected by reducing days of receivables and days of inventory. Additionally, firm size, GDP growth, and sales growth positively impacted performance. The study suggests that managers in emerging markets should focus on effective working capital management to improve
1. The document discusses ratio analysis and financial analysis. Ratio analysis is a tool that evaluates the financial position and performance of a firm by establishing relationships between financial statement items.
2. Financial analysis identifies the financial strengths and weaknesses of a firm. It is done by analyzing ratios calculated from a firm's balance sheet and income statement. Key ratios include liquidity ratios, profitability ratios, and leverage ratios.
3. Ratio analysis involves comparing a firm's ratios to standards like its own past ratios, competitor ratios, industry averages, and projected ratios. This allows users to evaluate the firm's financial stability, profitability, and efficiency over time.
Effect of Cash Management on The Financial Performance of Cooperative Banks i...journal ijrtem
This paper analyses the effect of cash management on the financial performance of cooperatives
banks in Rwanda. A descriptive research design was used. The population comprised of 148 employees of ZIGMA
CSS from which a sample of 108 employees was determined using Solvirn and Yemen’s formula. Data was
collected from both primary and secondary sources using questionnaires and document analysis. Data was
presented using frequency tables from which analysis was made. A multi regression analysis was used to analyse
relationship between the variables. The results from the survey revealed that ZIGMA CSS uses various cash
management techniques in the cash management. The results further revealed a strong relationship between cash
management and financial performance of ZIGMA CSS. The study concludes that cash management is a key tool
in the financial management of the banks since cash forms the biggest asset of the bank. Cooperatives banks
should ensure that they develop policies in effective cash management.
Determinants of Cash holding in German MarketIOSR Journals
Cash is usually known as the blood of any business entity that is why it is very important policy matter in the modern corporate financial decision and policy matters. An appropriate level of cash is required within the firm for the good and smooth operations of any sort of business entity. This research report investigates the determinants of cash holding in non-financial firms of Germany across different firm sizes and industries. Furthermore the data set for the period of 2000 to 2010 for the firm size, log of total assets, EBIT, Capital expenditure percentage of sales, working capital, liquidity (current ratio), and leverage has been taken to study the impact of these on level of corporate cash holdings. It is shown that cash holdings must be analysed from a dynamic point of view: A strong empirical support was found for the hypothesis of implicit cash targets. Financial determinants influence the corporate cash holdings, but it’s not clear which model, the transaction cost model or the managerial opportunism, thesis supports best the empirical findings. The findings of this study are consistent with the predictions of the trade-off theory, pecking order theory, and agency cost theory. The result gave strong evidence that firm size, working capital, and leverage significantly affect the cash holdings decisions of non-financial firms and that are in conformity with the existing literature on the determinants of corporate cash holdings
Capital structure and market values of companiesAlexander Decker
1) The document discusses the relationship between capital structure and market values of companies. It notes that an optimal capital structure is important for maximizing shareholder wealth and market value.
2) The author reviews theories on how capital structure can impact firm value. While the Modigliani-Miller theory suggests capital structure is irrelevant, other research has found relationships between capital structure, growth opportunities, and firm value.
3) Debt financing can increase firm value through tax benefits and lower costs than equity, but it also increases financial risk which may offset these benefits. An optimal capital structure balances these costs and benefits.
This document is a dissertation submitted by Antonios Tseos to the University of Leicester in partial fulfillment of the requirements for a Master of Science in Finance degree. The dissertation examines mergers and acquisitions in banking and finance, and whether they create shareholder value. Specifically, it aims to determine if human resource management is important for the success of financial institution M&As and if there is an adequate systematic approach. It covers whether specific practices can help manage post-merger integration, if prior M&A experience impacts performance, and if management quality is crucial for success. The dissertation finds that balancing economic and human capital is key to M&A success, as cultural issues are often overlooked. It argues a proactive
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
The Effect of Capital Structure on Profitability of Energy American Firms:inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Working capital management year wise researchErum Altaf
This presentation is about the research which have been done in field of Working Capital. Different esearchers done research on WCM in different aspect,
A study on financial & performance analysis of acc limitedcjvicky
This document analyzes the financial performance and position of ACC Limited, India's largest cement producer, using ratio analysis. It summarizes ACC's history and industry, examines key financial ratios to analyze profitability, liquidity, asset use efficiency and debt levels over several years. The analysis finds that ACC's current ratio is below ideal levels but cash ratio is adequate, debtors' collection period is reasonable, and assets and capital are generally used efficiently. It concludes that ACC should improve its quick ratio and maintains its satisfactory debt-equity levels.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
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Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
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In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Ratio analysis project on ONGC of year 2010-11 & 2011-12Arjun Negi
Title: ratio analysis for period 2010-11 & 2011-12 : case study of ONGC SCOPE:
a) Ratio Analysis: concept, definition, Objectives, merits and demerits;
b) Calculation of solvency ratios: short term & long term;
c) Analysis of last two year 2010-11 & 2011-12;
d) Conclusion.
( included bibliography, literature review , and ONGC balance sheet )
Nwankwo, odi an empirical analysis of corporate survival and growth ijsaid ...William Kritsonis
The document summarizes a research paper on efficient working capital management as a prerequisite for corporate survival and growth. It discusses how working capital, consisting of current assets like cash, accounts receivable, inventory, and current liabilities, must be efficiently managed for a company to continue operating and growing over time. The researchers examined different aspects of working capital management, including inventory management, accounts receivable, cash position, and suggested measures to improve efficiency. Their findings showed that inefficient working capital management can lead to issues like excess inventory, inability to pay bills, and unproductive cash that hurts a company's survival and growth.
Nwankwo, odi an empirical analysis of corporate survival and growth ijsaid ...William Kritsonis
The document summarizes a research paper on efficient working capital management as a prerequisite for corporate survival and growth. It discusses how working capital, consisting of current assets like cash, accounts receivable, inventory, and current liabilities, must be efficiently managed for a company to continue operating and growing over time. The paper examines different aspects of working capital management, including reducing inventory levels, speeding up accounts receivable collections, and slowing payment terms for suppliers. It recommends that companies analyze factors like demand patterns and supplier lead times to optimize inventory and improve cash flow through better alignment of costs and customer payments.
Nwankwo, odi an empirical analysis of corporate survival and growth ijsaid ...William Kritsonis
NATIONAL FORUM JOURNALS (Founded 1982 (www.nationalforum.com) is a group of national and international refereed journals. NFJ publishes articles on colleges, universities and schools; management, business and administration; academic scholarship, multicultural issues; schooling; special education; counseling and addiction, international issues; education; organizational theory and behavior; educational leadership and supervision; action and applied research; teacher education; race, gender, society; public school law; philosophy and history; psychology, and much more. Dr. William Allan Kritsonis, Editor-in-Chief.
Post 1-nirupamaWorking capital ManagementCash Conversion Cycle.docxstilliegeorgiana
Post 1-nirupama
Working capital Management
Cash Conversion Cycle
Cash conversion cycle is the period it takes a company to convert its investments in inventory and other resources to cash flows from sales. The cash conversion cycle measure the time that each net input is in the production and sales process before it is turned into cash received (Cash Conversion Cycle, 2016). Cash conversion cycle depends on the time needed by the company to sell its inventory, the time taken to collect the receivables and the time taken to pay all the bills without experiencing penalties. It is a quantitative measure that is used to evaluate the efficiency of the company.
Cash Budget
It is the estimated flow of cash in and out of a business over a certain period of time. It helps in evaluating whether an item has enough cash to operate. It is created from sales and production forecast as well as the assumptions of necessary spending and accounts receivables.
Credit policy
Credit policies are a set of roles used to determine the customers who are extended credit and billed (Michalski, 2014). The credit policies provide payment rules for those who have credit while it defines the limit to set an outstanding credit account. Credit policies provide the steps and procedures for the delinquent accounts.
Inventory management
Inventory management is used mainly to specify the shape and placement of stocked goods. Inventory management is used in many sectors within an organization or in many locations of supply network to manage the regular or planned courses of production and stock of materials
Informing Decision Making
Informing decision making is important in the success of organizations especially when dealing with financial issues in the organization. Informing decision making takes place when data is used to represent or support the decisions made concerning the financial status of organizations. For instance, working capital management represents the use of informing decision making (Importance of working capital management, 2017). In this case or scenario, data is used to show the efficiency of an organization. It can be used to identify the performance of an organization. The use of data o inform business decisions serves as a means of providing evidence as to why certain decisions are made. The financial decisions of an organization require precise and straight forward information or data so as to support the business decisions. This is because for an organization to make any decisions, the financial data should be presented.
In such a scenario, informing decisions making is entirely utilized. From the time when data is collected to the time it is presented, the informing decision making is put into action because the information is used either right away or in the future to make important business decisions. Informed decisions are used to run the daily, weekly or annual business operations because they are believed to be important information (Potocan, 200 ...
This document summarizes a research study that examined the relationship between working capital management and financial performance of deposit money banks in Nigeria from 2007 to 2013. The study found a strong positive relationship between current ratio, quick ratio, and return on assets (ROA), while cash ratio was found to be inversely related to ROA. It recommends that banks maintain adequate liquidity through higher current and quick ratios to improve profitability, while reducing the amount of cash held to invest funds and generate higher returns. In general, the study empirically proved that effective working capital management can positively impact the profitability of deposit money banks in Nigeria.
This document is a project report submitted by Jibin Babu to the Indian Institute of Planning and Management on working capital management at Lamiya Silks in Thrissur, Kerala from April to May 2012. It includes an acknowledgements section, table of contents, executive summary, and sections on the introduction to working capital, research methodology, company and industry overview, internship activities, assessment, conclusion, illustrations, and bibliography. The major purpose is to analyze Lamiya Silks' working capital management through evaluating annual reports and financial statements.
This document is a project report submitted by Jibin Babu to the Indian Institute of Planning and Management on working capital management at Lamiya Silks in Thrissur, Kerala from April to May 2012. It includes an acknowledgements section, table of contents, executive summary, and sections on the introduction to working capital, research methodology, company and industry overview, internship activities, assessment, conclusion, illustrations, and bibliography. The major purpose is to analyze Lamiya Silks' working capital management through evaluating annual reports and financial statements.
An Empirical Analysis on the Nature of Relationship between Capital Structure...iosrjce
The financing decision with regard to capital structure theory of finance has been a topic of many
theories and their conflicting output for past many years. This paper aims to analyse the nature of relationship
between the capital structure of a firm and its performance. The data of 40 firms excluding financial services
firms listed on Nifty indices on National Stock Exchange is studied (The composition of 50 firms on Nifty
represents a well branch out index reflecting precisely the overall market conditions). Financial services firms
have been excluded from purview of this paper, as they are in the business of collecting money and investing in
financial assets rather than producing goods, hence follow a unique business valuation model. Further financial
services sector being one of the most sensitive sectors. This paper analyzes a period of 13 years (2001-2014)
covering the phases of a business cycle starting from boom (2001/02-2006/07), recession (2007/08-2008/09)
and then recovery (2009/10-2013/14). The complete business cycle will aid to demonstrate the results more
accurately. This paper also surveys the topical developments in the empirical capital structure research. The
data for a period of 13 years is analysed using descriptive statistics, correlation and multiple regression
techniques. For research purpose, the ratios such as debt-equity ratio, debt-asset ratio and long term debt are
taken as independent variables whereas Net Profit, Net Profit Margin, ROCE, ROE and ROA are the ratios
taken as dependent variables.
Working capital management and profitability an empirical analysisIAEME Publication
This document summarizes a study examining the relationship between working capital management and profitability among Indian manufacturing firms. The study uses financial data from 1,198 manufacturing firms over a 5-year period. Correlation analysis found negative relationships between measures of working capital management (debtor's days, inventory days, creditor's days, cash conversion cycle) and firm profitability. Regression analysis will further examine these relationships to determine how adjusting elements of working capital management could impact profitability. The results aim to provide Indian manufacturers insights on variables that influence their profits.
This document summarizes a research study that examined the relationship between working capital management and profitability for non-listed firms in Ghana from 2004-2009. The study used cash conversion cycles and its components (days of receivables, days of inventory, and days of payables) as measures of working capital management. Gross operating profit to total assets was used as the measure of firm performance. The results showed that profitability was negatively related to the length of the cash conversion cycle. Specifically, performance was positively affected by reducing days of receivables and days of inventory. Additionally, firm size, GDP growth, and sales growth positively impacted performance. The study suggests that managers in emerging markets should focus on effective working capital management to improve
1. The document discusses ratio analysis and financial analysis. Ratio analysis is a tool that evaluates the financial position and performance of a firm by establishing relationships between financial statement items.
2. Financial analysis identifies the financial strengths and weaknesses of a firm. It is done by analyzing ratios calculated from a firm's balance sheet and income statement. Key ratios include liquidity ratios, profitability ratios, and leverage ratios.
3. Ratio analysis involves comparing a firm's ratios to standards like its own past ratios, competitor ratios, industry averages, and projected ratios. This allows users to evaluate the firm's financial stability, profitability, and efficiency over time.
Effect of Cash Management on The Financial Performance of Cooperative Banks i...journal ijrtem
This paper analyses the effect of cash management on the financial performance of cooperatives
banks in Rwanda. A descriptive research design was used. The population comprised of 148 employees of ZIGMA
CSS from which a sample of 108 employees was determined using Solvirn and Yemen’s formula. Data was
collected from both primary and secondary sources using questionnaires and document analysis. Data was
presented using frequency tables from which analysis was made. A multi regression analysis was used to analyse
relationship between the variables. The results from the survey revealed that ZIGMA CSS uses various cash
management techniques in the cash management. The results further revealed a strong relationship between cash
management and financial performance of ZIGMA CSS. The study concludes that cash management is a key tool
in the financial management of the banks since cash forms the biggest asset of the bank. Cooperatives banks
should ensure that they develop policies in effective cash management.
Determinants of Cash holding in German MarketIOSR Journals
Cash is usually known as the blood of any business entity that is why it is very important policy matter in the modern corporate financial decision and policy matters. An appropriate level of cash is required within the firm for the good and smooth operations of any sort of business entity. This research report investigates the determinants of cash holding in non-financial firms of Germany across different firm sizes and industries. Furthermore the data set for the period of 2000 to 2010 for the firm size, log of total assets, EBIT, Capital expenditure percentage of sales, working capital, liquidity (current ratio), and leverage has been taken to study the impact of these on level of corporate cash holdings. It is shown that cash holdings must be analysed from a dynamic point of view: A strong empirical support was found for the hypothesis of implicit cash targets. Financial determinants influence the corporate cash holdings, but it’s not clear which model, the transaction cost model or the managerial opportunism, thesis supports best the empirical findings. The findings of this study are consistent with the predictions of the trade-off theory, pecking order theory, and agency cost theory. The result gave strong evidence that firm size, working capital, and leverage significantly affect the cash holdings decisions of non-financial firms and that are in conformity with the existing literature on the determinants of corporate cash holdings
Capital structure and market values of companiesAlexander Decker
1) The document discusses the relationship between capital structure and market values of companies. It notes that an optimal capital structure is important for maximizing shareholder wealth and market value.
2) The author reviews theories on how capital structure can impact firm value. While the Modigliani-Miller theory suggests capital structure is irrelevant, other research has found relationships between capital structure, growth opportunities, and firm value.
3) Debt financing can increase firm value through tax benefits and lower costs than equity, but it also increases financial risk which may offset these benefits. An optimal capital structure balances these costs and benefits.
This document is a dissertation submitted by Antonios Tseos to the University of Leicester in partial fulfillment of the requirements for a Master of Science in Finance degree. The dissertation examines mergers and acquisitions in banking and finance, and whether they create shareholder value. Specifically, it aims to determine if human resource management is important for the success of financial institution M&As and if there is an adequate systematic approach. It covers whether specific practices can help manage post-merger integration, if prior M&A experience impacts performance, and if management quality is crucial for success. The dissertation finds that balancing economic and human capital is key to M&A success, as cultural issues are often overlooked. It argues a proactive
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
The Effect of Capital Structure on Profitability of Energy American Firms:inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Working capital management year wise researchErum Altaf
This presentation is about the research which have been done in field of Working Capital. Different esearchers done research on WCM in different aspect,
A study on financial & performance analysis of acc limitedcjvicky
This document analyzes the financial performance and position of ACC Limited, India's largest cement producer, using ratio analysis. It summarizes ACC's history and industry, examines key financial ratios to analyze profitability, liquidity, asset use efficiency and debt levels over several years. The analysis finds that ACC's current ratio is below ideal levels but cash ratio is adequate, debtors' collection period is reasonable, and assets and capital are generally used efficiently. It concludes that ACC should improve its quick ratio and maintains its satisfactory debt-equity levels.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Ratio analysis project on ONGC of year 2010-11 & 2011-12Arjun Negi
Title: ratio analysis for period 2010-11 & 2011-12 : case study of ONGC SCOPE:
a) Ratio Analysis: concept, definition, Objectives, merits and demerits;
b) Calculation of solvency ratios: short term & long term;
c) Analysis of last two year 2010-11 & 2011-12;
d) Conclusion.
( included bibliography, literature review , and ONGC balance sheet )
Nwankwo, odi an empirical analysis of corporate survival and growth ijsaid ...William Kritsonis
The document summarizes a research paper on efficient working capital management as a prerequisite for corporate survival and growth. It discusses how working capital, consisting of current assets like cash, accounts receivable, inventory, and current liabilities, must be efficiently managed for a company to continue operating and growing over time. The researchers examined different aspects of working capital management, including inventory management, accounts receivable, cash position, and suggested measures to improve efficiency. Their findings showed that inefficient working capital management can lead to issues like excess inventory, inability to pay bills, and unproductive cash that hurts a company's survival and growth.
Nwankwo, odi an empirical analysis of corporate survival and growth ijsaid ...William Kritsonis
The document summarizes a research paper on efficient working capital management as a prerequisite for corporate survival and growth. It discusses how working capital, consisting of current assets like cash, accounts receivable, inventory, and current liabilities, must be efficiently managed for a company to continue operating and growing over time. The paper examines different aspects of working capital management, including reducing inventory levels, speeding up accounts receivable collections, and slowing payment terms for suppliers. It recommends that companies analyze factors like demand patterns and supplier lead times to optimize inventory and improve cash flow through better alignment of costs and customer payments.
Nwankwo, odi an empirical analysis of corporate survival and growth ijsaid ...William Kritsonis
NATIONAL FORUM JOURNALS (Founded 1982 (www.nationalforum.com) is a group of national and international refereed journals. NFJ publishes articles on colleges, universities and schools; management, business and administration; academic scholarship, multicultural issues; schooling; special education; counseling and addiction, international issues; education; organizational theory and behavior; educational leadership and supervision; action and applied research; teacher education; race, gender, society; public school law; philosophy and history; psychology, and much more. Dr. William Allan Kritsonis, Editor-in-Chief.
Post 1-nirupamaWorking capital ManagementCash Conversion Cycle.docxstilliegeorgiana
Post 1-nirupama
Working capital Management
Cash Conversion Cycle
Cash conversion cycle is the period it takes a company to convert its investments in inventory and other resources to cash flows from sales. The cash conversion cycle measure the time that each net input is in the production and sales process before it is turned into cash received (Cash Conversion Cycle, 2016). Cash conversion cycle depends on the time needed by the company to sell its inventory, the time taken to collect the receivables and the time taken to pay all the bills without experiencing penalties. It is a quantitative measure that is used to evaluate the efficiency of the company.
Cash Budget
It is the estimated flow of cash in and out of a business over a certain period of time. It helps in evaluating whether an item has enough cash to operate. It is created from sales and production forecast as well as the assumptions of necessary spending and accounts receivables.
Credit policy
Credit policies are a set of roles used to determine the customers who are extended credit and billed (Michalski, 2014). The credit policies provide payment rules for those who have credit while it defines the limit to set an outstanding credit account. Credit policies provide the steps and procedures for the delinquent accounts.
Inventory management
Inventory management is used mainly to specify the shape and placement of stocked goods. Inventory management is used in many sectors within an organization or in many locations of supply network to manage the regular or planned courses of production and stock of materials
Informing Decision Making
Informing decision making is important in the success of organizations especially when dealing with financial issues in the organization. Informing decision making takes place when data is used to represent or support the decisions made concerning the financial status of organizations. For instance, working capital management represents the use of informing decision making (Importance of working capital management, 2017). In this case or scenario, data is used to show the efficiency of an organization. It can be used to identify the performance of an organization. The use of data o inform business decisions serves as a means of providing evidence as to why certain decisions are made. The financial decisions of an organization require precise and straight forward information or data so as to support the business decisions. This is because for an organization to make any decisions, the financial data should be presented.
In such a scenario, informing decisions making is entirely utilized. From the time when data is collected to the time it is presented, the informing decision making is put into action because the information is used either right away or in the future to make important business decisions. Informed decisions are used to run the daily, weekly or annual business operations because they are believed to be important information (Potocan, 200 ...
This document summarizes a research study that examined the relationship between working capital management and financial performance of deposit money banks in Nigeria from 2007 to 2013. The study found a strong positive relationship between current ratio, quick ratio, and return on assets (ROA), while cash ratio was found to be inversely related to ROA. It recommends that banks maintain adequate liquidity through higher current and quick ratios to improve profitability, while reducing the amount of cash held to invest funds and generate higher returns. In general, the study empirically proved that effective working capital management can positively impact the profitability of deposit money banks in Nigeria.
This document is a project report submitted by Jibin Babu to the Indian Institute of Planning and Management on working capital management at Lamiya Silks in Thrissur, Kerala from April to May 2012. It includes an acknowledgements section, table of contents, executive summary, and sections on the introduction to working capital, research methodology, company and industry overview, internship activities, assessment, conclusion, illustrations, and bibliography. The major purpose is to analyze Lamiya Silks' working capital management through evaluating annual reports and financial statements.
This document is a project report submitted by Jibin Babu to the Indian Institute of Planning and Management on working capital management at Lamiya Silks in Thrissur, Kerala from April to May 2012. It includes an acknowledgements section, table of contents, executive summary, and sections on the introduction to working capital, research methodology, company and industry overview, internship activities, assessment, conclusion, illustrations, and bibliography. The major purpose is to analyze Lamiya Silks' working capital management through evaluating annual reports and financial statements.
This document provides an acknowledgment and summary of a project report on working capital management at Jai Bharat Maruti Ltd. in Manesar, India. The 6-week project involved interviewing executives, collecting and analyzing company data. Key findings included acid test and current ratios below industry standards, high and increasing debtors, and increasing working capital needs. The author thanks those involved in the project, including the director, project guide, and HR officer for the learning opportunity.
This document analyzes the relationship between working capital, liquidity, profitability, and solvency of ACC Limited, an Indian cement company, from 2000-2010. It finds that despite having negative working capital for most of the period, ACC was able to earn good returns through an aggressive working capital policy, but that this ultimately put its solvency at risk. The study uses various financial ratios and tests to evaluate ACC's liquidity, profitability, and risk over time.
Working capital management of automobiles industry in haryana [www.writekraft...WriteKraft Dissertations
Writekraft Research & Publication LLP.
We are one of the leading PhD assistance company that deals in helping PhD scholars in their Thesis, Research paper writing and publication work. We are providing custom PhD Thesis written for you exactly the way you want along with a Turnitin plagiarism report.
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Working capital management of automobiles industry in haryana [www.writekraft...WriteKraft Dissertations
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission:
To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision:
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer's aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
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NATIONAL AWARD FOR BEST RESEARCH PROJECT (By Hon. President APJ Abdul Kalam)
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We have PhD experts from reputed institutions/ organizations like Indian Institute of Technology (IIT), Indian Institute of Management (IIM) and many more apex education institutions in India. Our works are tailored and drafted as per your requirements and are totally unique.
From past years our core advisory members, research team assisted research scholars from various universities from all corners of world.
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Management, Commerce, Finance, Marketing, Psychology, Education, Sociology, Mass communications, English Literature, English Language, Law, History, Computer Science & Engineering, Electronics & Communication Engineering, Mechanical Engineering, Civil Engineering, Electrical Engineering, Pharmacy & Healthcare.
Working capital management of automobiles industry in haryana [www.writekraft...WriteKraft Dissertations
Writekraft Research & Publication LLP.
We are one of the leading PhD assistance company that deals in helping PhD scholars in their Thesis, Research paper writing and publication work. We are providing custom PhD Thesis written for you exactly the way you want along with a Turnitin plagiarism report.
For more Information Contact us@ admin@writekraft.com
Or Call us @ 7753818181, 9838033084
www.writekraft.com
Running head business management research aryan532920
This document is a research report submitted by Allan A Lusenji to Masinde Muliro University in partial fulfillment of the requirements for a Bachelor of Commerce degree. The report examines the relationship between capital structure and financial performance of banks listed on the Nairobi Securities Exchange. It provides background information on capital structure and financial performance. It also reviews various studies that have found both positive and negative relationships between leverage/debt and profitability/performance. The report will analyze the capital structure and financial performance of banks listed in Nairobi and determine the nature of the relationship between the two factors.
A nexus between liquidity & profitability a study of trading companies in sri...Alexander Decker
This document summarizes a study that investigated the relationship between liquidity and profitability of trading companies in Sri Lanka. The study analyzed annual report data from 8 listed trading companies over a 5-year period from 2008 to 2012. Correlation and regression analyses were used to examine the nature and extent of the relationship between liquidity ratios like current ratio and quick ratio and profitability ratios like return on equity and return on assets. The findings suggest there is a significant relationship between liquidity and profitability among the sampled trading companies in Sri Lanka. However, the results may not be generalizable to non-public companies or other sectors. The document provides background on liquidity, profitability, prior studies on the relationship, and the methodology used
The statement of cash flow provides an important ingredient for rational decision-making as
regards the financial stability and viability of an organization. The success and survival of every organization
depends on its abilities to generate enough cash inflows to meet its objectives. The study examines the relevance
of the statement of cash flows in the decision making of an organization with a particular emphasizes on the
banking sector in Nigeria. The survey research design was adopted. The population of the study consists of
commercial banks in Nigeria. The target population of the study consists of 750 employees of the 21 deposit
money banks in Port Harcourt metropolis. A sample size of 261 was determined using Taro Yamen formula.
Structured questionnaire was used as an instrument for primary data collection and was designed in Likert scale
5 points format ranging from strongly agreed = 5 to strongly disagreed = 1. It was evident from the empirical
results that significant and positive relationship exists between cash flow and decision-making. On the strength
of this findings, it was recommended that Regulatory Authorities such as the Financial Reporting Council of
Nigeria, and the Securities and Exchange Commission should develop a strong policy framework that will
encourage the banking sector and other organizations to establish a result oriented cash flow system; that will
enable the investing public to evaluate the financial viability and liquidity of an organization and to avail
themselves of any financial risk capable of eroding their investment.
Comparative study on working capital managementSupa Buoy
This document provides an overview of a project report comparing the working capital management of Bhilai Steel Plant and Tata Iron and Steel Company (TISCO). It includes an acknowledgements section thanking various managers and directors at Bhilai Steel Plant for their guidance and support. It also includes declarations signed by the project guide and student. The document then provides background information on Bhilai Steel Plant, which is one of the first integrated steel plants established in India. It discusses the organizational structure and operations of Bhilai Steel Plant and Steel Authority of India Limited (SAIL), the public sector undertaking that manages Bhilai Steel Plant and several other steel plants. The case study then focuses on providing details about Bhilai
This document summarizes a research report on the relationship between working capital management and profitability. The report analyzes data from 60 Pakistani textile companies over 2001-2006. The results show a statistically significant negative relationship between profitability (measured by return on assets) and the number of days accounts receivable, inventory, and accounts payable are outstanding. Proper management of working capital through optimizing current assets and liabilities can thus improve company profits. The report also acknowledges the importance of balancing liquidity and profitability in working capital management.
PROJECT ON WORKING CAPITAL MANAGEMENT
Efficient management of working Capital is one of the pre-conditions for the success of an enterprise. To reach optimal working capital management firm manager should control the trade-off between profitability and liquidity accurately. The purpose of this study is to investigate the relationship between working capital management and firm’s profitability.
In this study, we have selected a sample of 5 top notch Electricals firms and taken their financial data for a period of 6 years from 2008 – 2013 and studied the effect of different variables of working capital management including the Cash conversion cycle and Current ratio on the profitability of the firms.
The study shows that there is a negative significant relationship between cash conversion cycle & firm’s profitability and positive relationship between Current Ratio & profitability of firms. This reveals that reducing cash conversion period and increasing the current ratio results into profitability increase. Thus, in purpose to create shareholder value, firm manager should concern on shorten of cash conversion cycle till accomplish optimal level.
Similar to Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed At Karachi Stock Exchange (20)
This document provides a technical review of secure banking using RSA and AES encryption methodologies. It discusses how RSA and AES are commonly used encryption standards for secure data transmission between ATMs and bank servers. The document first provides background on ATM security measures and risks of attacks. It then reviews related work analyzing encryption techniques. The document proposes using a one-time password in addition to a PIN for ATM authentication. It concludes that implementing encryption standards like RSA and AES can make transactions more secure and build trust in online banking.
This document analyzes the performance of various modulation schemes for achieving energy efficient communication over fading channels in wireless sensor networks. It finds that for long transmission distances, low-order modulations like BPSK are optimal due to their lower SNR requirements. However, as transmission distance decreases, higher-order modulations like 16-QAM and 64-QAM become more optimal since they can transmit more bits per symbol, outweighing their higher SNR needs. Simulations show lifetime extensions up to 550% are possible in short-range networks by using higher-order modulations instead of just BPSK. The optimal modulation depends on transmission distance and balancing the energy used by electronic components versus power amplifiers.
This document provides a review of mobility management techniques in vehicular ad hoc networks (VANETs). It discusses three modes of communication in VANETs: vehicle-to-infrastructure (V2I), vehicle-to-vehicle (V2V), and hybrid vehicle (HV) communication. For each communication mode, different mobility management schemes are required due to their unique characteristics. The document also discusses mobility management challenges in VANETs and outlines some open research issues in improving mobility management for seamless communication in these dynamic networks.
This document provides a review of different techniques for segmenting brain MRI images to detect tumors. It compares the K-means and Fuzzy C-means clustering algorithms. K-means is an exclusive clustering algorithm that groups data points into distinct clusters, while Fuzzy C-means is an overlapping clustering algorithm that allows data points to belong to multiple clusters. The document finds that Fuzzy C-means requires more time for brain tumor detection compared to other methods like hierarchical clustering or K-means. It also reviews related work applying these clustering algorithms to segment brain MRI images.
1) The document simulates and compares the performance of AODV and DSDV routing protocols in a mobile ad hoc network under three conditions: when users are fixed, when users move towards the base station, and when users move away from the base station.
2) The results show that both protocols have higher packet delivery and lower packet loss when users are either fixed or moving towards the base station, since signal strength is better in those scenarios. Performance degrades when users move away from the base station due to weaker signals.
3) AODV generally has better performance than DSDV, with higher throughput and packet delivery rates observed across the different user mobility conditions.
This document describes the design and implementation of 4-bit QPSK and 256-bit QAM modulation techniques using MATLAB. It compares the two techniques based on SNR, BER, and efficiency. The key steps of implementing each technique in MATLAB are outlined, including generating random bits, modulation, adding noise, and measuring BER. Simulation results show scatter plots and eye diagrams of the modulated signals. A table compares the results, showing that 256-bit QAM provides better performance than 4-bit QPSK. The document concludes that QAM modulation is more effective for digital transmission systems.
The document proposes a hybrid technique using Anisotropic Scale Invariant Feature Transform (A-SIFT) and Robust Ensemble Support Vector Machine (RESVM) to accurately identify faces in images. A-SIFT improves upon traditional SIFT by applying anisotropic scaling to extract richer directional keypoints. Keypoints are processed with RESVM and hypothesis testing to increase accuracy above 95% by repeatedly reprocessing images until the threshold is met. The technique was tested on similar and different facial images and achieved better results than SIFT in retrieval time and reduced keypoints.
This document studies the effects of dielectric superstrate thickness on microstrip patch antenna parameters. Three types of probes-fed patch antennas (rectangular, circular, and square) were designed to operate at 2.4 GHz using Arlondiclad 880 substrate. The antennas were tested with and without an Arlondiclad 880 superstrate of varying thicknesses. It was found that adding a superstrate slightly degraded performance by lowering the resonant frequency and increasing return loss and VSWR, while decreasing bandwidth and gain. Specifically, increasing the superstrate thickness or dielectric constant resulted in greater changes to the antenna parameters.
This document describes a wireless environment monitoring system that utilizes soil energy as a sustainable power source for wireless sensors. The system uses a microbial fuel cell to generate electricity from the microbial activity in soil. Two microbial fuel cells were created using different soil types and various additives to produce different current and voltage outputs. An electronic circuit was designed on a printed circuit board with components like a microcontroller and ZigBee transceiver. Sensors for temperature and humidity were connected to the circuit to monitor the environment wirelessly. The system provides a low-cost way to power remote sensors without needing battery replacement and avoids the high costs of wiring a power source.
1) The document proposes a model for a frequency tunable inverted-F antenna that uses ferrite material.
2) The resonant frequency of the antenna can be significantly shifted from 2.41GHz to 3.15GHz, a 31% shift, by increasing the static magnetic field placed on the ferrite material.
3) Altering the permeability of the ferrite allows tuning of the antenna's resonant frequency without changing the physical dimensions, providing flexibility to operate over a wide frequency range.
This document summarizes a research paper that presents a speech enhancement method using stationary wavelet transform. The method first classifies speech into voiced, unvoiced, and silence regions based on short-time energy. It then applies different thresholding techniques to the wavelet coefficients of each region - modified hard thresholding for voiced speech, semi-soft thresholding for unvoiced speech, and setting coefficients to zero for silence. Experimental results using speech from the TIMIT database corrupted with white Gaussian noise at various SNR levels show improved performance over other popular denoising methods.
This document reviews the design of an energy-optimized wireless sensor node that encrypts data for transmission. It discusses how sensing schemes that group nodes into clusters and transmit aggregated data can reduce energy consumption compared to individual node transmissions. The proposed node design calculates the minimum transmission power needed based on received signal strength and uses a periodic sleep/wake cycle to optimize energy when not sensing or transmitting. It aims to encrypt data at both the node and network level to further optimize energy usage for wireless communication.
This document discusses group consumption modes. It analyzes factors that impact group consumption, including external environmental factors like technological developments enabling new forms of online and offline interactions, as well as internal motivational factors at both the group and individual level. The document then proposes that group consumption modes can be divided into four types based on two dimensions: vertical (group relationship intensity) and horizontal (consumption action period). These four types are instrument-oriented, information-oriented, enjoyment-oriented, and relationship-oriented consumption modes. Finally, the document notes that consumption modes are dynamic and can evolve over time.
The document summarizes a study of different microstrip patch antenna configurations with slotted ground planes. Three antenna designs were proposed and their performance evaluated through simulation: a conventional square patch, an elliptical patch, and a star-shaped patch. All antennas were mounted on an FR4 substrate. The effects of adding different slot patterns to the ground plane on resonance frequency, bandwidth, gain and efficiency were analyzed parametrically. Key findings were that reshaping the patch and adding slots increased bandwidth and shifted resonance frequency. The elliptical and star patches in particular performed better than the conventional design. Three antenna configurations were selected for fabrication and measurement based on the simulations: a conventional patch with a slot under the patch, an elliptical patch with slots
1) The document describes a study conducted to improve call drop rates in a GSM network through RF optimization.
2) Drive testing was performed before and after optimization using TEMS software to record network parameters like RxLevel, RxQuality, and events.
3) Analysis found call drops were occurring due to issues like handover failures between sectors, interference from adjacent channels, and overshooting due to antenna tilt.
4) Corrective actions taken included defining neighbors between sectors, adjusting frequencies to reduce interference, and lowering the mechanical tilt of an antenna.
5) Post-optimization drive testing showed improvements in RxLevel, RxQuality, and a reduction in dropped calls.
This document describes the design of an intelligent autonomous wheeled robot that uses RF transmission for communication. The robot has two modes - automatic mode where it can make its own decisions, and user control mode where a user can control it remotely. It is designed using a microcontroller and can perform tasks like object recognition using computer vision and color detection in MATLAB, as well as wall painting using pneumatic systems. The robot's movement is controlled by DC motors and it uses sensors like ultrasonic sensors and gas sensors to navigate autonomously. RF transmission allows communication between the robot and a remote control unit. The overall aim is to develop a low-cost robotic system for industrial applications like material handling.
This document reviews cryptography techniques to secure the Ad-hoc On-Demand Distance Vector (AODV) routing protocol in mobile ad-hoc networks. It discusses various types of attacks on AODV like impersonation, denial of service, eavesdropping, black hole attacks, wormhole attacks, and Sybil attacks. It then proposes using the RC6 cryptography algorithm to secure AODV by encrypting data packets and detecting and removing malicious nodes launching black hole attacks. Simulation results show that after applying RC6, the packet delivery ratio and throughput of AODV increase while delay decreases, improving the security and performance of the network under attack.
The document describes a proposed modification to the conventional Booth multiplier that aims to increase its speed by applying concepts from Vedic mathematics. Specifically, it utilizes the Urdhva Tiryakbhyam formula to generate all partial products concurrently rather than sequentially. The proposed 8x8 bit multiplier was coded in VHDL, simulated, and found to have a path delay 44.35% lower than a conventional Booth multiplier, demonstrating its potential for higher speed.
This document discusses image deblurring techniques. It begins by introducing image restoration and focusing on image deblurring. It then discusses challenges with image deblurring being an ill-posed problem. It reviews existing approaches to screen image deconvolution including estimating point spread functions and iteratively estimating blur kernels and sharp images. The document also discusses handling spatially variant blur and summarizes the relationship between the proposed method and previous work for different blur types. It proposes using color filters in the aperture to exploit parallax cues for segmentation and blur estimation. Finally, it proposes moving the image sensor circularly during exposure to prevent high frequency attenuation from motion blur.
This document describes modeling an adaptive controller for an aircraft roll control system using PID, fuzzy-PID, and genetic algorithm. It begins by introducing the aircraft roll control system and motivation for developing an adaptive controller to minimize errors from noisy analog sensor signals. It then provides the mathematical model of aircraft roll dynamics and describes modeling the real-time flight control system in MATLAB/Simulink. The document evaluates PID, fuzzy-PID, and PID-GA (genetic algorithm) controllers for aircraft roll control and finds that the PID-GA controller delivers the best performance.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf46adnanshahzad
How to Start Up a Company: A Step-by-Step Guide Starting a company is an exciting adventure that combines creativity, strategy, and hard work. It can seem overwhelming at first, but with the right guidance, anyone can transform a great idea into a successful business. Let's dive into how to start up a company, from the initial spark of an idea to securing funding and launching your startup.
Introduction
Have you ever dreamed of turning your innovative idea into a thriving business? Starting a company involves numerous steps and decisions, but don't worry—we're here to help. Whether you're exploring how to start a startup company or wondering how to start up a small business, this guide will walk you through the process, step by step.
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Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed At Karachi Stock Exchange
1. IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 11, Issue 2 (May. - Jun. 2013), PP 52-57
www.iosrjournals.org
www.iosrjournals.org 52 | Page
Influence of Working Capital Management and Liquidity on
Financial Soundness of Firms Listed At Karachi Stock Exchange
Ammar Ali Gull1
, Masood Arshad2
1&2
(School of Banking and Finance, GC University Faisalabad, Pakistan)
Abstract : This particular study tries to assess the nature of relationship of Working Capital Management
(WCM) and liquidity with firm’s performance. Most important issue for the firms is to decide the best suitable
level of working capital which can satisfy both motives f liquidity and profitability. Financial performance is
measured by return on capital employed while determinants of working capital and liquidity includes inventory
turnover, accounts receivable turnover, current and quick ratio. A sample of 19 cement companies listed on
Karachi Stock Exchange for a period of 2005 to 2010 has been taken out off 29 firms on the basis of availability
of data. Finally outcomes of bivariate analysis suggested that efficient management of working capital and
liquidity leads to financial success.
Keywords - Accounts Receivable Turnover, Current Ratio, Inventory Turnover, Karachi stock exchange (KSE).
I. INTRODUCTION
Financing needs of the corporations are of two types. One is short term and other is long term. Many
researchers have done remarkable work on long-term financing decisions of the firm. However from the
perspective of short term financing needs financial managers are attempting to define the rational level of
working capital, which ultimately enhance the shareholders equity. Working capital includes currents assets and
currents liabilities of firm. Currents assets include the most liquid assets such as cash, account receivable, and
inventory of the firm. Whereas account payable and short term debts are the elements of current liabilities.
Another important factor to measure the firm’s profitability is the cash conversion cycle (CCC). Basic
aim of cash conversion cycle is to determine the extent of time that is required by the company to transform its
resources into operating cash flows. It starts from the payment to supplier for purchase of raw material and ends
up with the receipt of revenue from the customer through sales. In more precise manner cash to cash cycle looks
at the time required to sell goods to customers, time required to collect receivable from the debtors and time
span to mature its obligations regarding payables without affecting its credit ratings. Cash conversion cycle
represents no. of days in which inventory is outstanding, days sales outstanding and the days in which payables
are outstanding. Account payable is another element of cash conversion cycle. Account payable turnover
days refer to the time period after which payment is due from the supplier. Delaying payment to its
creditors enhance the firm ability to get better quality of raw material and elastic source of financing.
However, too much delay in payment to the creditors will adversely affect the profitability and lowers the
credit ratings for the firm in the business environment. The customary view regarding the association between
the working capital and cash conversion cycle with the profitability is that shorter the cash conversion cycle better
the profitability position of the firm and vice versa. Working capital management is a famous topic in scholars of
corporate finance. Every business entity wants to enhance its profitability and liquidity with the passage of time.
Every business organization has to deal with short term assets and liabilities in a best possible manner to maintain a
good liquidity position. Horne and Wachowicz (2000) proposed that firms with best management of current assets
and liabilities can achieve higher rate of return on their investment and strong liquidity position. Eljelly (2004)
narrates the idea that when a firm is able to manage its short term resources and obligations efficiently, it will
eliminate the inability of meeting short term obligations. Top level management has to deal with most of
conceptual skills and decisions. Manager in many organizations spend significant time in taking assessment
for making best combinations of current assets and current liabilities in order to maintain their strong
liquidity and profitability position. Liquidity doesn’t mean to pay back its debts at the time of liquidation but
it means to maintain a good repute in the eyes of creditors in terms of short term day to day payments. So
with this indication, it becomes an integral part of management decision making to select the best
combination of current assets and current liabilities as clarified by joshi (1994).
1.1, Research Objectives
This study will concentrate on the following goals.
To asses is there any significance association between working capital management and profitability of firms.
To find out the degree up to which these elements are crucial for firm’s financial outcomes.
To assess the level of influence up to which profitability is affected by elements of working capital.
2. Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed at
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II. LITERATURE REVIEW
In the field of managerial finance managing working capital elements is a key issue for every business
organization. Joshi (1994) stated that only due to effective management of working capital a firm can maximize its
return on investment which affects the profitability. No doubt definite goal of the firm is to maximize the profit but
keeping the optimal combination of current assets and liabilities is an integrated part for the overall corporate
strategy too. Market competition and business productivity is highly affected by working capital management.
Various other scholars have described the same idea that working capital management is the key objective of
every finance manager. Working capital means money that is used by the firm for the purpose of its daily needs.
It is that portion of total assets which is used in meeting daily expenses of business. Outcomes of prior studies
reveal the fact that working capital management is the key element in financial decision making of all business
concerns, because finally it concludes the operating profitability both in terms of efficiency and effectiveness.
For survival of every business organization working capital management is an integral element of overall
business strategy. Smith (1980) reveals that working capital management affects the firm profitability. Deloof
(2003) narrates that market value of the firm can only be increased by the management of working capital. In
recent times a lot of studies are conducted to explore the association between profitability and working capital
management. Researchers has emphasized on inventory turnover and accounts receivable for this tenacity. Prior
scholars Afza and Nazir (2007) have concluded that there is a strong negative association between account
receivable turnover, inventory turnover, and cash conversion cycle (CCC) with reference to the profitability of the
firm. Firm with greater liquidity ratio and better working capital management will achieve remarkable profitability
on its investment. Ningning, Xinging and Juan (2006) revealed that account receivable turnover, inventory turnover
and cash conversion cycle (CCC) have adverse relationship with profitability, while account payable cycle has
positive connection. Shin and soenen (1998) said that firm’s liquidity position is also determined by working
capital. Liquidity position measures the ability of firms to meet their short term obligations when they become
due. If a firm does not meet its short term obligations on time it is said to be insolvent (Dunn and Cheatham,
1993). However, too much liquidity position will also lower the profitability of the firm. Value of the firm
can be maximized if there is appropriate trade-off between liquidity and profitability. Deloof (2003) explained
that finding an ideal level of working capital and liquidity position is very problematic task for the firms. Nunn
(1981) and Kim and Srinivasan (1988) and Lazaridis and Tryfonidis (2006) explained that working capital
management of the firm is determined by production processes and technological features. They also
explored the idea that level of working capital selected by the firm depends on the firm-specific factors
such as capital intensity, profitability, and size of the firm etc. Ultimate objective of the firms is to
maximize the shareholders wealth but maintaining the liquidity position is an important objective too.
Increasing profitability at the cost of liquidity carries serious problems for the firm. For this
consideration, working capital management is very important decision. Most of the firms has invested
significant amount of cash in working capital (Deloof, 2003). So it is clear that working capital
management have a substantial impact on profitability of firms. He found that there is a negative
relationship between account receivable turnover in days, inventories in the stock, account payable in
days and gross operating income (GOI), with respect to Belgian firms. Previous studies concluded that
companies can enhance their productivity in terms of profitability by shortening the cash cycle (CC) (Deloof,
2003; Lazaridis and Tryfonidis, 2006). But on the other hand, disagreements regarding the shorter cash
conversion cycle also exist. If a company has a long inventory turnover it ultimately lowers down the
chance of uncertainty on the subject of delivery stoppage. Shah (2009) narrated that through substantial
credit policy a firm can enhance its relations with the customers and get higher sales return. Researchers
have observed a strong negative relationship between the cash cycle and profitability. Managing current assets and
current liabilities represents the operational efficiency (Lazaridis and Tryfonidis, 2006). Besides the above
described theoretical framework, the additional three conceptual philosophies are also imperative. These theories
include resource based view of the firm, agency theory, and transactions cost theory.
Resource Based View Theory
In resource based view theory the fundamental assumption is that when the proprietor and managers
accumulate the distinctive resources, it in long run provides a competitive edge to the firm. This notation was
explained by (Wernerfelt, 1984). Firm resources include both physical and non-physical. Tangible resources refer
to those assets which have actual existence in the business environment. Whereas intangible refers to the good will
of the business, knowledge and procedures etc.
Agency Theory
The major assumption in the agency theory is that managers are the agents of the owners. If they don’t
perform their duties in good and organized manner in order to enhance and protect the wealth of owners, an agency
problem exists. It’s their prime responsibility to enhance the shareholders’ value and minimize the problems.
3. Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed at
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Formalized management system can reduces the risk of agency issue. Normally in the small firms formalized
management system perform well because owners are hardly willing to take consent of employees (Nayak and
Greenfield, 1994).
Transaction Theory
Management of the business has to acquire information for securing the benefit of the
shareholders. Transaction cost means the expenses which are incurred to acquire the required
information. Mian and smith (1992) suggested that efficient management system is one in which the
desired results are always more than the actual one. Firm will invest its resources into those projects
where they expect to attain the maximum margin. Many small firms have minimum margins on their
investment with respect to the working capital. These firms invest a very low amount in working capital.
Some firms invest their resources in a particular element of working capital.
From the above discussion it is understandable that firm can increase its value through achieving
the optimum level of working capital. Effective management of the firm’s resources will lead to the
corporate profitability both in terms of productivity and efficiency. Hence from the above debate working
capital management of the business can be determined by efficient cash conversion cycle, and liquidity
position. Most of the prior studies were constructed on the western data sets. Only a few studies are
conducted in the Pakistan and specifically with reference to the cement manufacturing firms. Thus present
study will tell us that outcomes of this research are in accordance with prior studies or not.
III. RESEARCH METHODOLOGY
Methodology of this study is based on univariate and bivariate analysis. Univariate analysis refers to
the analysis of each and every variable on the basis of its central tendency i.e. mean, median, mode and
measures of dispersion like range, and standard deviation. Bivariate analysis discusses the correlation and
regression analysis between two variables. If two variables are correlated, than this can be measured through the
various quantitative statistical techniques like Pearson correlation analysis. In current study researchers will
investigate the univariate and bivariate analysis of various factors affecting the profitability. At final stage
scholars will examine the causal relationship between the dependent and independent variables with respect to
working capital and profitability of the firms. This causal association will be investigate through regression
analysis.
3.1, Sample
For the purpose of this study a sample of 19 firms listed in cement sector at Karachi Stock Exchange
for the period of 2005 to 2010 was selected out off 29 companies on the basis of availability of data.
3.2, Data Sources
Audited annual report and accounts
Other statutory statements
Prospectuses
Economics publications
State Bank Publications
Press Cuttings
World Wide Web
Books and other Publications.
3.3, Variables of Study
Different dependent and independent variables have been selected on the basis of their significance in
past studies. The important for these endogenous and exogenous variables with their null and alternative
hypothesis are as follows:
3.3.1, Return on capital employed (ROCE)
ROCE is a measure of how company is performing its operating activities from its employed capital.
The capital employed consists of all long term funds that are used by company in generating revenue. It is
calculated by subtracting the current liabilities from total assets. Previous studies have revealed the fact that
return on capital employed must be greater than borrowing cost of the firm if it want to survive over a longer
period of time. The idea behind is that higher borrowing cost will reduce the earning capacity and lead to
ultimate hardship. Return on capital employed can be calculated with the help of following formula
4. Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed at
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Where the total capital employed means the total amount of equity and non-current liabilities or total
asset minus current liabilities.
3.3.2, Current Ratio (CR)
Financing needs of the corporation are of two types. One is the short term and the other is long-term.
Meeting its short term obligations in time when it will become due is the key component which designates the
firm’s solvency (ability to pay back debts). Liquidity ratios are the main acting element, which define the
margin of safety for the firm. High liquidity ratios i.e. (CR) mean higher the ability to meet current obligations
and vice versa. On the other hand it is also a controversial point that if a firm maintains excessive liquidity. So it
will reduce the profitability of the firm because most liquid assets are seized in the form of extra funds. Current
ratio is a measure of firm’s liquidity and it can be calculated with the help of following formula.
3.3.3, Quick Ratio or Acid Test Ratio (QR)
In current assets of the business inventory is considered as least liquid asset. Most important reason for
inventory to be considered least liquid is that many types of inventories can’t be sold in time because it contains
incomplete items. The second idea behind is that most of the inventory is to be sold out on credit basis and it
become receivables before it is converted into cash. Firm can measure its better liquidity position with acid test
ratio when its inventory is not easily converted into cash. So for this purpose acid test ratio defines the quick or
liquid assets in the business.
3.3.4, Inventory Turnover Ratio (ITR)
Inventory turnover is another element of working capital. Inventory turnover determine the days a firm
needs to convert its inventory into sales. Normally inventory turnover is calculated by dividing the cost of goods
sold by average inventory. Average inventory in the business consists of total amount in opening and ending
balance divided by 2. Inventory turnover determines the management’s efficiency in determining the efficient
level of stock in the business. Firm has to face the issue of overstock which may lead to increase in inventory
cost just because of lower inventory turnover ratio.
3.3.5, Accounts Receivable Turnover Ratio (ARTR)
Accounts receivable turnover ratios measure the days in which firm converts its receivable into cash. If
receivable turnover ratio is high then firm is managing its working capital in an efficient way and vice versa. In
calculating the account receivable turnover ratio firms use net credit sale. If a firm uses the cash sale it will lead
to confusion. The whole calculation can be done with the help of following formula.
Where average account receivable can be calculated by adding the opening and ending balances of the
receivable and dividing it by 2.
3.4, Empirical Models
Regression model is used to explore the association among profitability working capital management
of firms. Our base model is written below
Firm’s Profitability = f (Working Capital Management)………….. (1)
Where profitability is measured by return on capital employed and determinants of working capital management
includes Current ratio, quick ratio, inventory turnover ratio and accounts receivable ratio.
Return on Capital Employed = f (Liquidity Ratio, Current Ratio, Inventory Turnover Ratio and Accounts
Receivable Ratio)…………………… (2)
Yit = β0 + βXit + µit i = 1, 2, 3, . . . . , 19 and t = 1, 2, . . , 6
Where:
Yit is called dependent variable.
β0 represents the intercept.
Xit is independent variable.
5. Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed at
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µit are the error terms.
i is number of companies and
t is number of years.
So, we can write our main equation (1) as:
ROCE = β0 + β1CRit + β2QRit + β3ITRit + β4ARTRit + µit……… (3)
IV. RESULTS AND DISCUSSIONS
As mentioned in methodology this study is based on univariate and multivariate analysis. Table- 01
exhibits the results of univariate or descriptive analysis for a sample of 19 cement manufacturing companies
listed at KSE from 2005 to 2010. This table represents the six years summary of mean, standard deviation,
maximum, minimum, skewness and kurtosis for dependent (ROCE) and independent variables (CR, QR, ITR &
ARTR) of study.
Table- 02 & 03 will elaborate the outcomes of multivariate analysis. Before selecting explanatory
variables it is useful to determine whether there is high degree of correlation between variables or not. This
problem is so called multicolinearity. For this purpose Pearson correlation analysis is used. The Pearson
correlation matrix for the defined set of variables is presented in the Table- 02. These values represent the level
of correlation among independent variables. Only accounts receivable turnover ratio is negatively correlated to
all other measures namely CR, QR & ITR. All variables except ARTR are positively associated with each other.
From findings of correlation analysis it is clear that multicolinearity problem does not exist. This issue exists
only when the value of any variable is greater than 0.80 as stated by Kennedy (2008).
Regression model is used to explore the impact of liquidity and working capital management on
profitability of cement industry. Table- 03 demonstrates the findings of regression analysis. R Square for ROE is
0.54833, according to it 54% of change in return on capital employed is due to independent variables and 46%
deviation in dependent variable is not due to determinants of WCM and liquidity used in model. This model has
an F-statistics 15.7482 and Its Constant coefficient is a positive value o.4767. CR is having a strong favorable
association with return on capital employed, if current ratio will increase then ROCE will also increase and vice
versa. There is a positive but insignificant relationship among quick ratio and profitability of cement sector.
Both ITR & ARTR having an inverse connection with return on capital employed. Simply it means with
decrease in inventory turnover ratio in days & accounts receivable turnover ratio in days ROCE will rise due to
efficient use of economic resources and it will decline with increase in these ratios.
V. CONCLUSIONS
Working capital management and liquidity determinants of firm has a significant impact on profitability.
Higher the current ratio higher will be the financial performance of firm. Quick ratio has an insignificant effect on
ROCE. ITR is found to have a strong negative connection with profitability it means with rise in inventory turnover
in days return on capital employed will fall and vice versa. Profitability is adversely affected by ARTR, further it
mean ROCE will increase with decrease in accounts receivable turnover in days and fall with rise of ARTR. Finally
it is suggested firms have to utilize their short term resources with utmost care to maintain an optimum level
working capital in order to achieve the goal of financial well being.
5.1, Future Research
This study has focused on management of working capital and its consequences on profitability of
Pakistan’s cement sector. Validity of current research can be enhanced by adding more industries like sugar,
petroleum, telecommunication, textile, infrastructure and many more to assess the influence of WCM has on
profitability. Addition of some other variables i.e. capital structure, Assets turnover and Solvency ratios can be
done along with measures of WCM to make a better model in order to explain this relationship in a more
accurate way.
REFERENCES
[1] J. C. V. Horne, and J. M. Wachowicz, Fundamentals of Financial Management (11th
Ed. Prentice Hall Inc, 2000).
[2] Eljelly, Liquidity-Profitability Tradeoff: An empirical Investigation in an Emerging Market, International Journal of Commerce &
Management, 14(2), 2004, 48-61.
[3] P. V. Joshi, Working Capital Management under Inflation 1st Ed (Anmol Publishers, 1995).
[4] K. Smith, Profitability versus Liquidity Tradeoffs in Working Capital Management, in Readings on the Management of Working
Capital (New York: St. Paul, West Publishing Company, 1980).
[5] M. Deloof, Does Working Capital Management Affect Profitability of Belgian Firms?, Journal of Business, Finance and Accounting, 30,
2003, 573-587.
[6] T. Afza, and M. S. Nazir, Working Capital Management Policies of Firms: Empirical Evidence from Pakistan, Proc. 9th conf. on South
Asian Management Forum (SAMF), North South University, Dhaka, Bangladesh, 2007,
[7] K. Ningning, Z. Xining, and L. Juan, The influence of working capital management efficiency on the company profitability, Nankai
Business Review, 12, 2006, 121-126.
[8] H. H. Shin, and L. Soenen, Efficiency of Working Capital and Corporate Profitability, Journal of Finance Economic, 8, 1998, 37-45.
6. Influence of Working Capital Management and Liquidity on Financial Soundness of Firms Listed at
www.iosrjournals.org 57 | Page
[9] P. Dunn, and L. Cheatham, Fundamentals of small business financial management for start-up, survival, growth, and changing
economic circumstances, Managerial Finance, 19, 1993, 1-13.
[10] K. Nunn, The strategical determinants of working capital: a product line perspective”. Journal of Financial Research, 4,
1981, 207-219.
[11] Y. Kim, and V. Srinivasan, Advances in Working Capital Management (JAI Press: Greenwich Connecticut, 1998).
[12] I. Lazaridis, and D. Tryfonidis, Relationship between working capital management and profitability of listed companies in
the Athens stock exchange, Journal of Financial Management and Analysis, 19, 2006, 26-35.
[13] N.H. Shah, Optimization of pricing and ordering under the two-stage credit policy for deteriorating items when the end
demand is price and credit period sensitive, International Journal of Business Performance and Supply Chain Modeling, 1(2/3),
2009, 229-239.
[14] B. Wernerfelt, A resource based view of the firm, Strategic Management Journal, 5, 1984, 171-180.
[15] A. Nayak, and S. Greenfield, The use of management accounting information for managing micro businesses (In A. Hughes, Storey, D.J.
Edition, Finance and the Small Firm, Routledge London, 1998).
[16] S. L. Mian, and C. W. Smith, Accounts receivable management policy: theory and evidence, Journal of Finance, 47, 1992, 169-200.
List of Tables
Table 01
Descriptive statistics
Table 02
Correlation t Matrix
QR CR ITR ARTR
QR 1.000000 -- -- --
CR 0.799174 1.000000 -- --
ITR 0.065376 0.015985 1.000000 --
ARTR -0.118882 -0.210248 -0.145559 1.000000
Table 03
Regression Analysis
Return on Capital Employed
Variables Coefficient T-statistics
*
T-statistics is significant at the level of 5%.
Variables N Mean S.D Minimum Maximum Skewness Kurtosis
ROCE 114 3.873158 24.63504 -65.16 107.18 1.012851 6.907325
CR 114 0.872456 0.602684 0.14 3.02 1.216401 4.231778
QR 114 0.332281 0.495145 0.009 2.78 2.230813 8.334527
ITR 114 30.78123 55.51337 0.007 564.12 7.981946 76.26798
ARTR 114 26.47872 76.15623 7.44 384.2294 3.771920 16.32955
C 0.4767 1.8557
CR 0.2935 2.8314*
QR 0.1173 1.2682
ITR -0.1286 -4.7351*
ARTR -0.1759 -3.7548*
R-squared 0.5483
F-statistic 15.7482
Observations 114