The document discusses working capital management and its impact on the profitability of fertilizer companies in Pakistan. It begins with background information on fertilizer and working capital management. It then presents the problem statement, objectives, and significance of the study. The literature review defines key terms and discusses previous empirical research findings regarding the relationship between various aspects of working capital management (average collection period, inventory conversion period, average payment period, and cash conversion cycle) and return on assets as a measure of profitability. The study aims to analyze these relationships for fertilizer firms in Pakistan using a empirical model and hypotheses. The methodology discusses the research design, sample size, statistical tools, and software used. Preliminary results from the analysis are also presented in
The document discusses the impact of working capital management on the profitability of pharmaceutical companies in Pakistan. It analyzes data from 11 pharmaceutical companies listed on the Pakistan Stock Exchange over a 5-year period from 2017 to 2021. The results of a panel data regression model show that average collection period and inventory conversion period have a statistically significant negative impact on return on equity, while average payment period and cash conversion cycle have a statistically significant positive impact on return on equity. This indicates that effective working capital management can influence the profitability of pharmaceutical companies in Pakistan.
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 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 on 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. The study aims to analyze how variables affecting working capital management influence firm profitability. Specifically, it examines the impact of days of debtors, days of inventory, days of creditors, and cash conversion cycle on profitability. The results of the study provide insights for Indian manufacturing firms on managing working capital to improve profitability.
Working capital management 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.
The document discusses the relationship between financial management practices and organizational performance. It examines several key financial management practices including capital structure decision, investment appraisal techniques, dividend policy, working capital management, and financial performance assessment. It suggests that properly implementing these practices, such as ensuring an appropriate debt-equity ratio and internal rate of return on investments, can help improve an organization's performance and profitability. While more research is still needed, some studies indicate a positive relationship between effective financial management and better access to outside financing and capital structure.
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.
Impact of working capital on profitabilityNuzzar Naseem
This document summarizes a research study that examined the impact of working capital management on the profitability of firms in Pakistan under different business cycles. The study found that cash conversion cycle and accounts receivable showed a negative relationship with firm profitability in different cycles. Inventory had a positive impact on profitability in boom periods. Accounts payable positively impacted profitability in recessions. The study concluded that efficient working capital management can increase firm profitability.
The document discusses the impact of working capital management on the profitability of pharmaceutical companies in Pakistan. It analyzes data from 11 pharmaceutical companies listed on the Pakistan Stock Exchange over a 5-year period from 2017 to 2021. The results of a panel data regression model show that average collection period and inventory conversion period have a statistically significant negative impact on return on equity, while average payment period and cash conversion cycle have a statistically significant positive impact on return on equity. This indicates that effective working capital management can influence the profitability of pharmaceutical companies in Pakistan.
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 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 on 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. The study aims to analyze how variables affecting working capital management influence firm profitability. Specifically, it examines the impact of days of debtors, days of inventory, days of creditors, and cash conversion cycle on profitability. The results of the study provide insights for Indian manufacturing firms on managing working capital to improve profitability.
Working capital management 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.
The document discusses the relationship between financial management practices and organizational performance. It examines several key financial management practices including capital structure decision, investment appraisal techniques, dividend policy, working capital management, and financial performance assessment. It suggests that properly implementing these practices, such as ensuring an appropriate debt-equity ratio and internal rate of return on investments, can help improve an organization's performance and profitability. While more research is still needed, some studies indicate a positive relationship between effective financial management and better access to outside financing and capital structure.
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.
Impact of working capital on profitabilityNuzzar Naseem
This document summarizes a research study that examined the impact of working capital management on the profitability of firms in Pakistan under different business cycles. The study found that cash conversion cycle and accounts receivable showed a negative relationship with firm profitability in different cycles. Inventory had a positive impact on profitability in boom periods. Accounts payable positively impacted profitability in recessions. The study concluded that efficient working capital management can increase firm profitability.
Finance is the lifeblood and lifeline of any business entity either commercial or non-commercial. The
Survival, Stability and Sustainability of a firm is highly associated with its financial wellness. It can be observed through its ability to pay(re) short-term as well as long term liabilities, meeting the regular financial obligations, to increase the value of firm and ability to generate profit. Financial analysis, evaluation, and assessment help in determines the financial position and financial strength of a firm. Among the plenty of methods and tolls available for financial performance, ratio analysis is more useful and meaningful. These ratios make it possible to analyze the evolution of the financial situation of a firm (trend analysis), cross-sectional analysis and comparative analysis.
The goal of working capital management is to
ensure that the firm is able to continue its operations and that
it has sufficient cash flow to satisfy both maturing short-term
debt and upcoming operational expenses. The current study
has concentrated on analysing the working capital
management of Larsen & Turbo Company based on their
liquidity, profitability positions and cash flow statements over
a decade. The study is based on secondary data collected
from the financial reports published in the official websites of
the company for a period of thirteen years from 2003-04 to
2015-16. The data have been analyzed using the financial and
statistical tools namely Ratio Analysis, cash flow and
Correlation Analysis. It has been found that the working
capital management of Larsen & Turbo is good and the
company has to improve its turnover ratios in the future.
A Critical Study On Impact Of Working Capital Management On Profitability Of ...Elizabeth Williams
This document presents a study on the impact of working capital management on the profitability of manufacturing firms in India, focusing specifically on paint companies. It begins with an abstract that summarizes the purpose and findings of the study.
The introduction provides background on working capital and its relationship to liquidity and profitability. It states that the study aims to analyze the relationship between working capital variables and profitability in selected paint companies.
The literature review discusses several prior studies that have examined relationships between working capital management, liquidity, and profitability. The research gap identified is that prior studies have not adequately examined profitability issues in the Indian paint industry and how controlling working capital components could impact losses.
The study objectives and
Determinants of working capital management efficiencyAlexander Decker
This document summarizes a research study that examines the determinants of working capital management efficiency for automotive and engineering firms listed on the Karachi Stock Exchange in Pakistan. The study uses cash conversion cycle, days sales inventory, days payable outstanding, and days sales outstanding as explanatory variables to analyze quarterly panel data from 9 firms over 5 years. It also administers a questionnaire on Enterprise Resource Planning (ERP) systems. The study aims to determine the efficient factors of working capital management for these firms and investigate the relationships between working capital components and independent variables. It concludes that keeping the cash conversion cycle shortest through tight collection policies and liberal payment terms, along with efficient inventory management, can help firms keep working capital efficient.
Effect of Financial Ratios on Firm Performance Study of Selected Brewery Firm...ijtsrd
The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports accounts of the selected Breweries Companies. The population of the study consisted of thirteen 13 quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four 4 of the quoted Breweries firms are selected to form the sample of the study for the period of nine 9 years 2010 – 2018 . The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm. Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45177/effect-of-financial-ratios-on-firm-performance-study-of-selected-brewery-firms-in-nigeria/agbata-amaka-elizabeth
Determinants of Earnings Management of Listed Oil and Gas Firms in Nigeriapaperpublications3
Abstract: Earnings management has gained global recognition. Yet, it is still not clear what determines earnings management within the context of the oil and gas sector in Nigeria. Therefore, this study examined the determinants of earnings management of listed oil and gas firms in Nigeria. Correlational research design was adopted in order to ascertain the relationship between the identified determinants of earnings management and earnings management. A sample of seven (7) oil and gas firms was seven out of a population of fifteen (15) firms. The study covered a period of six (6) years from 2010 to 2015. Secondary data were gathered from the published annual reports of the selected firms. The data were analysed using multiple regression analysis through Stata. Results from the analysis show that external sector specialization has positive and significant effect on earnings management of listed oil and gas firms while external audit tenure and audit committee gender have negative and significant relationship with earnings management of listed oil and gas firms in Nigeria. However, the study found that there is no significant relationship between external audit fees and earnings management of listed oil and gas firms in Nigeria. Therefore, it was recommended that oil and gas firms should ensure that, after a certain period of time, they change the services of auditors that specialize in auditing the oil and gas sector; the oil and gas firms should be encouraged to utilize the services of auditors with long tenure; and that the oil and gas firms in Nigeria should be encouraged to continue to engage the services of more female audit committee members.
Keywords: Earnings, Management, Firms, Nigeria.
Title: Determinants of Earnings Management of Listed Oil and Gas Firms in Nigeria
Author: Zayol, P. I., Adzembe, Iyornenge, Akaa, Samuel Terzungwe
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
Cash BudgetThe working capital management consist of the relatio.docxtroutmanboris
Cash Budget
The working capital management consist of the relationship of the company short-term liabilities & assets. Its goal is to confirm that an organization can maintain its operations in addition has enough capacity to satisfy all evolving short-term debt also potential operational expenses. The working capital management includes managing accounts payable, receivable, cash, and inventories (Studyfinance, 2020, p. para 1). As per the scenario, we take two components: inventory management and cash budget.
Cash Budget
A cash budget fixes the expected cash sources as well as uses it in a future. This budget used to measure either operations of the company and other activities can produce sufficient cash to fulfill the expected requirements of cash. Unless, then management needs to find alternative sources of financing. The cash budget inputs come from various other budgets. The cash budget enumerates debt, investments, and both interest expense and income which result in financing budget.
Example
The example demonstrates that the company is positioned in a negative cash situation by an excessively large dividend in the second cash budget week, combined with a major asset purchase the next week. Paying such a high dividend may be a challenge for lenders who don't like issuing loans; therefore, businesses can use the money to pay their shareholders and thus undermine their ability to repay the loans. Therefore, accepting a minimal dividend payout and eliminating a negative cash position can be better for the company (Accountingtools, 2019, p. para 2).
Inventory Management
Inventory management is refers to that process which includes storing, organizing, as well as using the inventory of a company. These contain the management of components, finished products, raw materials, as well as processing and warehousing such items. For companies through complex manufacturing processes and supply chains, balancing the inventory shortages and gluts risks is specifically difficult (Hayes, 2019, p. para 1).
References
Accountingtools. (2019). Cash budget. Retrieved from accountingtools: https://www.accountingtools.com/articles/2017/5/15/cash-budget
Hayes, A. (2019). Inventory management. Retrieved from investopedia: https://www.investopedia.com/terms/i/inventory-management.asp
Studyfinance. (2020). Working capital management. Retrieved from studyfinance: https://studyfinance.com/working-capital-management/
Plan Proposal Template
The following is a guide to organize your assignment. Please be sure to remove the guiding questions and comments for each section. You are expected to write in a professional and academically appropriate manner, including using correct APA style and citations throughout.
Propose a plan, referencing relevant existing and newly created processes, to implement an intervention to improve quality and safety, and reduce costs in the context of a chosen health problem.
· Introduce a general summary of the project plan that you .
This document summarizes a study that examined the effect of liquidity, leverage, and total asset turnover on profitability of manufacturing companies in Indonesia from 2012-2017. The study found that liquidity, leverage, and total asset turnover simultaneously had a significant positive effect on profitability. Individually, liquidity, leverage, and total asset turnover were also found to positively impact profitability. The results also indicated that asset turnover was the dominant factor affecting profitability. The study recommends prioritizing listed manufacturing companies in infrastructure development projects.
An investigation of capital budgeting techniques on performance: a survey of...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
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.
A RESEARCH PAPER ON Quot THE IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITA...Amanda Moore
This document provides an introduction and overview of a research paper on the impact of working capital management on profitability in the pharmaceutical industry in Bangladesh. It includes an acknowledgements section, table of contents, and begins to outline the abstract, problem statement, objectives of the study, and literature review. The research will analyze the relationship between components of working capital management (cash conversion cycle, average days of collection, inventory turnover, deferred payables period) and profitability for pharmaceutical companies in Bangladesh from 2009-2010. The objectives are to establish these relationships and provide guidance for future research and business practices.
THE IMPACT OF FINANCIAL REPORTING ON CORPORATE PERFORMANCE : A STUDY RUN ON E...Vedat Akman
This study examines the impact of financial reporting on the corporate performance of Exxon Mobil Corporation. The researchers analyzed Exxon Mobil's financial statements and key performance metrics over time. The results showed a positive relationship between high-quality financial reporting that complies with accounting standards and improved corporate performance indicators. The researchers concluded that financial reporting provides important information to evaluate a company's efficiency and make informed investment decisions.
This document analyzes the financial performance of Radico Khaitan Ltd over several years using ratio analysis. It begins with an introduction and outlines the company profile. The analysis then calculates and compares various liquidity, profitability, and turnover ratios from 2016-2020. Key findings include the company's satisfactory but improving liquidity and profitability positions. The document concludes with recommendations to maintain profits and control costs, while acknowledging limitations of only considering monetary financial data.
This document analyzes financial ratios for Bharathi Cement Company over five years. It finds that the company's current and quick ratios indicate sufficient current assets to meet liabilities. Profitability ratios like net profit ratio have been decreasing since 2016-17, suggesting ineffective costs. Activity ratios show mostly positive trends, with fixed asset turnover and debtor's turnover ratios increasing in recent years. However, working capital turnover declined in 2018-19, potentially due to inefficient working capital use. Leverage ratios like debt-equity have fluctuated over the period but were highest in 2016-17, indicating greater risk from higher debt levels that year.
This document analyzes financial ratios for Bharathi Cement Company over five years. It finds that the company's current and quick ratios indicate sufficient current assets to meet liabilities. Profitability ratios like net profit ratio have been decreasing since 2016-17, suggesting ineffective costs. Activity ratios such as fixed asset turnover and debtor's turnover generally increased over time, while working capital turnover decreased in 2018-19, indicating inefficient working capital use. Leverage ratios like debt-equity were highest in 2016-17 and 2017-18, showing the company may have difficulty meeting debt obligations during those periods. Overall the analysis finds mixed financial performance with some ratios satisfactory but others indicating room for improvement.
A tool for measuring organization performance using ratio analysisAlexander Decker
This document discusses using ratio analysis to measure organizational performance. It begins by defining ratio analysis and outlining its importance for monitoring and improving performance. The study aims to examine how ratio analysis can be used as a tool for measuring organizational performance. It reviews relevant literature on ratio analysis and discusses various types of ratios and their classification. The methodology section outlines the survey approach used to collect data from employees of a company. Hypothesis testing is used to analyze the relationship between ratio analysis and organizational performance. The results support the hypothesis that ratio analysis highlights the importance of effective management.
A tool for measuring organization performance using ratio analysisAlexander Decker
This document discusses using ratio analysis to measure organizational performance. It defines ratio analysis as systematically analyzing ratios from financial reports to assess financial performance. Ratio analysis can help monitor and improve performance when ratios are regularly prepared and compared over time and to industry standards. The document presents the objectives of the study as analyzing how ratio analysis measures organizational performance and identifying its importance to stakeholders. It proposes using ratios to evaluate resource use, make projections, detect strengths and weaknesses, and assist management decision-making.
Corporate governance is of great importance for financial performance. Corporate governance issues have attracted public interest in the financial sector both locally and internationally after waves of corporate rip-offs and failures that almost led to loss of confidence in the finance sector. The general objective of this study was to determine the effect of corporate governance on financial performance of Savings and Credit Co-operatives in Kenya. The study adopted a descriptive research design. The study targeted a population of 65 active Savings and credit Co-operatives operating in Embu County. A sample size of 57 Savings and Credit Co-operatives was used in this study. Stratified sampling technique was used to select the sample. Primary data was collected using self-administered semi-structured questionnaires while secondary data was obtained from financial statements and periodicals using a record survey sheet. Pre-testing of research tool was conducted before the actual data collection was carried, to determine the reliability of the questionnaire by use of a Cronbach‘s alpha, statistical coefficient, while the validity was tested to ensure that the questions in the questionnaire provides adequate coverage to the investigative questions. Correlation and multiple regression analysis was used to establish the relationship between independent and dependent variables. The study findings indicated that corporate governance positively affected the financial performance. In specific the board composition and corporate risk management for SACCOs had a positive effect on the financial performances of the SACCOs. The study is beneficial to SACCOs management in improving the performance of Savings and Credit Co-operatives and enabling them to compete globally. The study recommends gender parity consideration and balanced mix of skilled board members during appointments of the board members. The recommendations are important to the government, especially the department of cooperatives in strengthening policies regarding cooperative societies.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Finance is the lifeblood and lifeline of any business entity either commercial or non-commercial. The
Survival, Stability and Sustainability of a firm is highly associated with its financial wellness. It can be observed through its ability to pay(re) short-term as well as long term liabilities, meeting the regular financial obligations, to increase the value of firm and ability to generate profit. Financial analysis, evaluation, and assessment help in determines the financial position and financial strength of a firm. Among the plenty of methods and tolls available for financial performance, ratio analysis is more useful and meaningful. These ratios make it possible to analyze the evolution of the financial situation of a firm (trend analysis), cross-sectional analysis and comparative analysis.
The goal of working capital management is to
ensure that the firm is able to continue its operations and that
it has sufficient cash flow to satisfy both maturing short-term
debt and upcoming operational expenses. The current study
has concentrated on analysing the working capital
management of Larsen & Turbo Company based on their
liquidity, profitability positions and cash flow statements over
a decade. The study is based on secondary data collected
from the financial reports published in the official websites of
the company for a period of thirteen years from 2003-04 to
2015-16. The data have been analyzed using the financial and
statistical tools namely Ratio Analysis, cash flow and
Correlation Analysis. It has been found that the working
capital management of Larsen & Turbo is good and the
company has to improve its turnover ratios in the future.
A Critical Study On Impact Of Working Capital Management On Profitability Of ...Elizabeth Williams
This document presents a study on the impact of working capital management on the profitability of manufacturing firms in India, focusing specifically on paint companies. It begins with an abstract that summarizes the purpose and findings of the study.
The introduction provides background on working capital and its relationship to liquidity and profitability. It states that the study aims to analyze the relationship between working capital variables and profitability in selected paint companies.
The literature review discusses several prior studies that have examined relationships between working capital management, liquidity, and profitability. The research gap identified is that prior studies have not adequately examined profitability issues in the Indian paint industry and how controlling working capital components could impact losses.
The study objectives and
Determinants of working capital management efficiencyAlexander Decker
This document summarizes a research study that examines the determinants of working capital management efficiency for automotive and engineering firms listed on the Karachi Stock Exchange in Pakistan. The study uses cash conversion cycle, days sales inventory, days payable outstanding, and days sales outstanding as explanatory variables to analyze quarterly panel data from 9 firms over 5 years. It also administers a questionnaire on Enterprise Resource Planning (ERP) systems. The study aims to determine the efficient factors of working capital management for these firms and investigate the relationships between working capital components and independent variables. It concludes that keeping the cash conversion cycle shortest through tight collection policies and liberal payment terms, along with efficient inventory management, can help firms keep working capital efficient.
Effect of Financial Ratios on Firm Performance Study of Selected Brewery Firm...ijtsrd
The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports accounts of the selected Breweries Companies. The population of the study consisted of thirteen 13 quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four 4 of the quoted Breweries firms are selected to form the sample of the study for the period of nine 9 years 2010 – 2018 . The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm. Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45177/effect-of-financial-ratios-on-firm-performance-study-of-selected-brewery-firms-in-nigeria/agbata-amaka-elizabeth
Determinants of Earnings Management of Listed Oil and Gas Firms in Nigeriapaperpublications3
Abstract: Earnings management has gained global recognition. Yet, it is still not clear what determines earnings management within the context of the oil and gas sector in Nigeria. Therefore, this study examined the determinants of earnings management of listed oil and gas firms in Nigeria. Correlational research design was adopted in order to ascertain the relationship between the identified determinants of earnings management and earnings management. A sample of seven (7) oil and gas firms was seven out of a population of fifteen (15) firms. The study covered a period of six (6) years from 2010 to 2015. Secondary data were gathered from the published annual reports of the selected firms. The data were analysed using multiple regression analysis through Stata. Results from the analysis show that external sector specialization has positive and significant effect on earnings management of listed oil and gas firms while external audit tenure and audit committee gender have negative and significant relationship with earnings management of listed oil and gas firms in Nigeria. However, the study found that there is no significant relationship between external audit fees and earnings management of listed oil and gas firms in Nigeria. Therefore, it was recommended that oil and gas firms should ensure that, after a certain period of time, they change the services of auditors that specialize in auditing the oil and gas sector; the oil and gas firms should be encouraged to utilize the services of auditors with long tenure; and that the oil and gas firms in Nigeria should be encouraged to continue to engage the services of more female audit committee members.
Keywords: Earnings, Management, Firms, Nigeria.
Title: Determinants of Earnings Management of Listed Oil and Gas Firms in Nigeria
Author: Zayol, P. I., Adzembe, Iyornenge, Akaa, Samuel Terzungwe
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
Cash BudgetThe working capital management consist of the relatio.docxtroutmanboris
Cash Budget
The working capital management consist of the relationship of the company short-term liabilities & assets. Its goal is to confirm that an organization can maintain its operations in addition has enough capacity to satisfy all evolving short-term debt also potential operational expenses. The working capital management includes managing accounts payable, receivable, cash, and inventories (Studyfinance, 2020, p. para 1). As per the scenario, we take two components: inventory management and cash budget.
Cash Budget
A cash budget fixes the expected cash sources as well as uses it in a future. This budget used to measure either operations of the company and other activities can produce sufficient cash to fulfill the expected requirements of cash. Unless, then management needs to find alternative sources of financing. The cash budget inputs come from various other budgets. The cash budget enumerates debt, investments, and both interest expense and income which result in financing budget.
Example
The example demonstrates that the company is positioned in a negative cash situation by an excessively large dividend in the second cash budget week, combined with a major asset purchase the next week. Paying such a high dividend may be a challenge for lenders who don't like issuing loans; therefore, businesses can use the money to pay their shareholders and thus undermine their ability to repay the loans. Therefore, accepting a minimal dividend payout and eliminating a negative cash position can be better for the company (Accountingtools, 2019, p. para 2).
Inventory Management
Inventory management is refers to that process which includes storing, organizing, as well as using the inventory of a company. These contain the management of components, finished products, raw materials, as well as processing and warehousing such items. For companies through complex manufacturing processes and supply chains, balancing the inventory shortages and gluts risks is specifically difficult (Hayes, 2019, p. para 1).
References
Accountingtools. (2019). Cash budget. Retrieved from accountingtools: https://www.accountingtools.com/articles/2017/5/15/cash-budget
Hayes, A. (2019). Inventory management. Retrieved from investopedia: https://www.investopedia.com/terms/i/inventory-management.asp
Studyfinance. (2020). Working capital management. Retrieved from studyfinance: https://studyfinance.com/working-capital-management/
Plan Proposal Template
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1. The Impact of Working Capital
Management on Profitability of
Fertilizer Industry of Pakistan
SHAFIQ UR REHMAN
CO. ADVISOR, PROF REHMAT ULLAH,
GOVT. COLLEGE OF COMMERCE QUETTA
3. Background of the Study
Fertilizer will be characterized as a compound or regular substance wont to make soil or land more
ripe manure should be applied to all or any type of harvest creation framework to acknowledge yield
levels which make the problem of trimming beneficial.( Fertilizer Def Dr jitendra pamecha 3 July 2020)
Fertilizer is a critical componention for the cutting edge ranch innovation for accomplishing the enormous
creation is the harvest.( Pakistani Def fertilizer Quddus,Siddiqi and Riaz 2008).
association segment of Pakistan in this study discovered some major inorganic compost are utilized to import
from worldwide market creation of inorganic manure emphatically affects the horticulture area and import of
inorganic compost irrelevantly affects farming area of Pakistan Gort of Pakistan deter the effect of compost
and energize introducing the new creation units of manure an enormous amount of inorganic manure is
delivered in Pakistan the interest of inorganic manure will likewise be expanded the development of inorganic
manure is expanded by 3.8 million tones from 1990- 2010d , The number of inhabitants on the planet has
been expanding has been expanding from the 60s at around 2% per annum while food creation is expanding
with 1.5 per annum in the world as per this there will be a strain the Pakistan farming in following couple of
year.( M . Bilal Tariq Rizwan Fareed Rabia Mia Naeem uddim Waqar Hassan Miss Sehrish Khan Dec 2016)
4. Working capital management is the most common way of funding effective money management and
controlling net current assests inside the boundaries of the strategy. Working capital management is a basic
corporate monetary choice since it straight for wardly affects the organizations productivity while directing
consistently business exercises a firm ought to endeavor to boost it s liquity and benefit.Working capital
management can bring about a liquity and emergency and a lessening in productivity. ( Abdul Rahman and Dr
Parameshwara Jun - March 2022).
1. Working Capital Management
2. Profitability
Profitability is what is going on in which a substance is producing a profit. Profitability emerges when the total
measure of income is more prominent than the total measure of costs in a detailing period assuming that an
element is recording it's deals under the gathering premise of bookkeeping it is very conceivable that the
productivity condition won,t be matched by the incomes produced by the association since some gathering
premise exchange for example devaluation don,t include incomes.( Accounting Tool April 23 2022)
5. Problem Statement
The paper target concentrating on effect of working capital administration on profitability of fertilizer fabricating
companies recorded in Pakistan trade.
Objective of the Study
To determine how working capital management affects the profitability of Pakistani fertilizer enterprises.
Significance of the Study
The review would assist understudy with grasping the terms and essentially separate among them such profitability
and profit worlord capital working administration however extensively it would help individuals participated in
systematic chief investor as well as stackholder.
7. Definition
• The measurement of the time it takes for a corporation to convert
cash that is invested in its operations into cash received as the
result of its operations
• 𝑪𝒂𝒔𝒉 𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑪𝒚𝒄𝒍𝒆 = 𝑨𝑪𝑷 + 𝑰𝑪𝑷 − 𝑨𝑷𝑷
Cash Conversion Cycle (CCC)
• It refers to the time, on average, it takes for a
company to collect payments due from customers or
clients. Whereas, the ACP is a metric that indicates
the average number of days that a firm takes to
collect & convert its AR into cas.
• 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑪𝒐𝒍𝒍𝒆𝒄𝒕𝒊𝒐𝒏 𝑷𝒆𝒓𝒊𝒐𝒅 =
𝑨𝒄𝒄𝒐𝒖𝒏𝒕 𝒓𝒆𝒄𝒆𝒊𝒗𝒂𝒃𝒍𝒆
𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔
𝑿 𝟑𝟔𝟓
Average Collection Period (ACP)
• The average payment period is referring to the
average period which is taken by a firm to pay its
liabilities for goods purchased on credit from the
company's suppliers.
• 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑷𝒂𝒚𝒎𝒆𝒏𝒕 𝑷𝒆𝒓𝒊𝒐𝒅 =
𝑨𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝑷𝒂𝒚𝒂𝒃𝒍𝒆
𝑷𝒖𝒓𝒄𝒉𝒂𝒔𝒆
𝑿 𝟑𝟔𝟓
Average Payment Period (APP)
• Determined by the ICP how long it will take for
converting inventory into sales, a time from the
purchase of new stock to the sale of the actual product
• 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑷𝒆𝒓𝒊𝒐𝒅 =
𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚
𝑪𝒐𝒔𝒕 𝒐𝒇 𝑮𝒐𝒐𝒅𝒔 𝑺𝒐𝒍𝒅
× 𝟑𝟔𝟓
Inventory Conversion Period (ICP)
• Profit is a still up in the air by how much pay or income
well beyond the costs or the business where it works a
companys goals is dependably to create a gain.
Profit
• The relationship between costs and revenues arising
from using assets of a firm - both fixed and current - in
production activities.
Profitability
• The term Return on Assets implies to a financial
ratio that reveals how profitable a corporation is in
connection to its total assets.
• 𝑹𝑶𝑬 =
𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆
𝑺𝒉𝒂𝒓𝒆 𝑯𝒐𝒍𝒅𝒆𝒓′𝒔 𝑬𝒒𝒖𝒊𝒕𝒚
× 𝟏𝟎𝟎
Return on Asset (ROA)
8. ASSOCIATION BETWEEN
ACP and ROA
• Has analyzed the inluence of WCM parts on profitability the Nairobi Stock
Trade (NSE). His outcome shows that there is a negative relationship between
Average Collection Period and. Profitability. (T A N R Jayarathne 27 February
2014).
9. ASSOCIATION BETWEEN
ICP and ROA
• The motivation behind this study is to look at the impact of working capital
administration on the benefit of recorded assembling firms in Ghana. The review utilized
auxiliary information gathered from seven (7) producing firms recorded on the Ghana
Stock Trade for a time of a decade (2005-2014). The benefit as reliant variable was
estimated with regards to net working benefit. The functioning not set in stone by
Records Receivables Period, Records Payables per Period, Stock . Additional proportion
current proportion utilized as liquidity marker and firm size as estimated by logarithm of
deals are utilized as control factors. Information was dissected utilizing the Fixed Effects
model of the Board information relapse and Inventory Conversion Cycle (ICP) days
adversely Negative Affected the benefit . The concentrate on suggested that assembling
firms ought to take on productive and viable approaches to dealing with these
component of working capital management.(Jacob Akomeah , Siaw Frimpong , 26 June
2019.)
10. ASSOCIATION BETWEEN
APP and ROA
• This study intended to examine the nexus between working capital
administration and the monetary presentation of firms. We utilized an example
of 12 recorded food and refreshment organizations in South Africa during the
period 2007 to 2016. This study gathered optional information from the iress
McGregor data sets for the Johannesburg Stock Trade (JSE) recorded
companiesFurthermore, the review tracked down a positive relationship
between the Average Payment Period (Application) and benefit. The discoveries
of this article recommend that monetary directors of firms need to embrace
forceful working capital administration approaches to make investor
abundance through improving the monetary execution of the firm.( Lindelwa
Makoni, Zimasa Mabandla 2019).
11. ASSOCIATION BETWEEN
CCC and ROA
• The examination researches the effect of working capital administration on monetary
execution by utilizing the information gathered from recorded firms on Ho chi Minh stock
Trade HOSE .The example in involved 68 public from over the time of a long time from
2014 to 2016 . Utilizing the variable Cash Conversation Cycle CCC as estimation for
Working Capital Management the examination likewise takes the accompanying factors
on to to though .Development income liqutlity Hazard and influence which are
demonstrated to affect firm execution other than working capital management
.Concerning estimation of monetary execution the factors include Return on Assests ROA
That what the outcomes infer Working Capital Management positively influences the
monetary execution of firm in the example . Consequently our review give another
knowledge to administrators on the best way to work on the monetary execution with
working capital management.( Hong - Lan Le, Kieu- Trang Le, Nigoc Le, Khaah Du , Dung
Tran, 31 August 2017 / 2018)
13. This research endeavors to understand the correlation between working capital management and the financial performance of Fertilizer
companies in pakistan. To achieve this goal, an empirical model is employed that utilizes the following equation:
ROAit = α0 + α1 (ACPit) + α2 (ICPit) + α3 (APPit) + α4 (CCCit) + 𝜺it
Where:
ROAit Represents the return on asset as the dependent variable, which is used as a measure of the profitability of the company.
α0 Represents the constant of the model.
ACPit Represents the average collection period as an independent variable.
ICPit Represents the inventory conversion period as an independent variable.
APPit Represents the average payment period as an independent variable.
CCCit Represents the cash conversion cycle as an independent variable.
α1, α2, α3, α4 Represent the coefficients of the independent variables.
𝜺it Represents the error term.
This model helps us to understand the effect of different aspects of working capital management on the profitability of the firms in the
Fertilizer sector.
Empirical Model
14. H1
There is a significant negative impact of ACP on the ROA of the
Fertilizer Industries of Pakistan.
Accepted
H2
There is a significant negative impact of ICP on the ROA of the Fertilizer
Industries of Pakistan.
Accepted
H3
There is a significant positive impact of APP on the ROA of Fertilizer
Industries of Pakistan.
Accepted
H4
There is a significant positive impact of CCC on the ROA of the
Fertilizer Industries of Pakistan.
Accepted
Hypothesis
16. Research Design
This study delvod in to the relationship between's four critical part of working capital
administration to be specific Average Payment Period Inventory Conversion Period
Average Collection Period and Cash Conversion Cycle and the effect on the productivity
(ROA) Return on Resources of assembling firms in Pakistan.
Sample Size
This study Inspects the monetary exhibition Six (6 ) firm from the Drug Areas that are
recorded on the Pakistan Stock Trade( PSX) over a time of five years from 2017 to 2021.
Simple size alludes to the quantity of members or perceptions remembered for a review. This
number is generally addressed by n. The size of an example impacts two factual properties: 1)
the accuracy of our evaluations and 2) the force of the review to reach inferences.
17. Statistical Tools
Data analysis tools assist specialists with figuring out the information gathered. It empowers them to report results
and make understandings. How the information is broke down relies upon the objectives of the task and the sort of
information gathered. A few examinations center around subjective information, others on quantitative information,
and numerous on both (blended strategies studies); instances of these can be found in a NAGT-GER Division
facilitated assortment of introductions on Techniques for Leading GER. The Scientific Apparatus assortment
remembers models for these areas, as well as unique sorts of logical device utilized for information explicit
applications and information perceptions. Quantitative and Subjective strategies both utilize rational, inductive, and
adductive cycles to comprehend an interaction or peculiarity, simply in various ways utilizing various
information.Research analysis tools are characterized as a progression of graphs, guides, and charts intended to
gather, decipher, and present information for a large number of utilizations and enterprises.The model will be
utilized to look at the relationship between's Functioning Capital Administration and productivity of drug
organizations in Pakistan . by considering the board information design of the example.
Software
In this research thesis Eviews 9 was used.
19. Result
Dependent Variable: ROA
Method: Panel Least Squares
Date: 05/28/23 Time: 04:03
Sample: 2017 2021
R-squared 0.704014 Mean dependent var 16.19267
Adjusted R-squared 0.656657 S.D. dependent var 10.77516
F-statistic 14.86590 Durbin-Watson stat 2.158588
Prob(F-statistic) 0.000002
Variable Coefficient Std. Error t-Statistic Prob.
C -26.72459 15.69385 -1.702870 0.1010
ACP 0.376667 0.080421 4.683719 0.0001
ICP 0.198967 0.141162 1.409495 0.1710
APP 0.586728 0.137202 4.276368 0.0002
CCC -0.316331 0.119453 -2.648172 0.0138
Periods included: 5
Cross-sections included: 6
Total panel (balanced) observations: 30
20. Table 1 outlines that the mean worth, which mirrors the focal inclination of the information, is
22.76667. The scope of the information, or the contrast between the most noteworthy and least
qualities, is 15.00000 to 29.00000, and the standard deviation, a proportion of how fanned out the
information is, is 3.359837. The skewness of the information, or how much it is lopsided, is -
0.110469, which is under nothing, it is adversely slanted to demonstrate that the information. The
kurtosis, or how much the information is topped, is 2.835842, implying that the circulation of the
information is leptokurtic, or more crested than a typical conveyance.
0
1
2
3
4
5
15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Series: ROA
Sample 2017 2021
Observations 30
Mean 22.76667
Median 23.00000
Maximum 29.00000
Minimum 15.00000
Std. Dev. 3.359837
Skewness -0.110469
Kurtosis 2.835842
Jarque-Bera 0.094701
Probability 0.953753
21. Table 2 Overall, it requires around 55 days for organizations in the example to gather cash from their clients
for deals. The standard deviation in the normal assortment period (ACP) is roughly 8 days, and the most
extreme number of days taken by any organization in the example to gather its receivables is 70 days. The
skewness of the information, or how much it is unbalanced, is - 0.393546, which is under nothing, it is
adversely slanted to demonstrate that the information. The kurtosis, or how much the information is crested, is
2.853124, implying that the dissemination of the information is leptokurtic, or more topped than a typical
dispersion.
0
1
2
3
4
5
6
7
35 40 45 50 55 60 65 70
Series: ACP
Sample 2017 2021
Observations 30
Mean 55.20000
Median 56.00000
Maximum 70.00000
Minimum 36.00000
Std. Dev. 7.707587
Skewness -0.393546
Kurtosis 2.853124
Jarque-Bera 0.801359
Probability 0.669865
22. Table 3 overall, it requires roughly 26 days for the organizations in the example to sell their stock. The
standard deviation in the stock transformation period (ICP) is roughly 4 days, and the greatest number of days
taken to sell stock is 33 days. The skewness of the information, or how much it is uneven, is 0.359884, which is
more noteworthy than nothing, it is decidedly slanted to demonstrate that the information. The kurtosis, or how
much the information is topped, is 2.458489, implying that the dispersion of the information is leptokurtic, or
more crested than a typical circulation.
0
1
2
3
4
5
6
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Series: ICP
Sample 2017 2021
Observations 30
Mean 25.63333
Median 25.00000
Maximum 33.00000
Minimum 19.00000
Std. Dev. 3.508446
Skewness 0.359884
Kurtosis 2.458489
Jarque-Bera 1.014125
Probability 0.602262
23. In this manner, the mean number of days to take care of bills (or the records payable period) would be roughly 79 days, as demonstrated by
the mean of the information in Table 4. The standard deviation would in any case be roughly 11 days, and the greatest number of days it takes
the organization to cover its bills would be 98 days.
The skewness of the information would in any case be negative, as demonstrated by a worth under nothing (- 0.536470). This demonstrates
that the conveyance of the information is slanted to one side, with a long right tail.
The kurtosis of the information would in any case be leptokurtic, with a worth of 2.672726. This demonstrates that the conveyance is more
crested than a typical dissemination, with a higher convergence of values close to the mean.
All things considered, to take care of its bills, with a standard deviation of 11 days. The organization has a greatest installment time of 98
days, and the circulation of installment periods is slanted to one side and more crested than a typical dissemination.
Table 4
0
2
4
6
8
10
12
50 55 60 65 70 75 80 85 90 95 100
Series: APP
Sample 2017 2021
Observations 30
Mean 79.03333
Median 80.50000
Maximum 98.00000
Minimum 50.00000
Std. Dev. 11.07181
Skewness -0.536470
Kurtosis 2.672726
Jarque-Bera 1.572884
Probability 0.455463
24. Table 5 overall, it requires around 97 days for the organizations in the example to finish the money transformation cycle, which
incorporates the time it takes to gather cash from clients for deals, sell stock, and pay off obligations. The standard deviation in the money
transformation cycle (CCC) is around 9 days, and the most extreme number of days taken to finish the cycle is 116 days. The skewness of the
information, or how much it is lopsided, is 0.703251, which is more noteworthy than nothing, it is decidedly slanted to show that the
information. The kurtosis, or how much the information is topped, is 2.526397, implying that the conveyance of the information is leptokurtic,
or more crested than a typical circulation
Table 5
0
2
4
6
8
10
12
85 90 95 100 105 110 115
Series: CCC
Sample 2017 2021
Observations 30
Mean 97.66667
Median 98.00000
Maximum 116.0000
Minimum 85.00000
Std. Dev. 8.840866
Skewness 0.703251
Kurtosis 2.526397
Jarque-Bera 2.753181
Probability 0.252438
26. The point of the ongoing review is to give observational proof with respect to the effect of Working Capital Administration on the benefit
of drug firm in Pakistan. The review incorporate an example of 6 drug firm recorded on the Pakistan Stock Trade( PSX) for a five year period
2o17 to 2021.
The intermediaries utilized for Working Capital Administration were the( ACP )(ICP) (APP) and (CCC). Return on Resources was utilized
as a proportion of productivity . The aftereffect of the review uncovered an immaterial Negative relationship between Average Collection Period
(ACP)and Inventory Conversion Period( ICP)in return on Assests .demonstrating increments when these period diminishes.
These finding are predictable with.previous studies . Ahm yaseen Chowdhary,M Zahedul , Sabiha Sultana and MD Kaysher Hamid 1 Feb
2018 and T.A.N.R Jayarathne 27 Feb 2014.and Muddassar khan , Danial Zahid , Shafique, Zulqarnan Safdar, Kiran Mustafa, Majid Awan ,
Awais Wasim 7 July 2020 , and Jacob Akomeah , and Siaw Frimpong , 26 June 2019.
On the other hand a Positive and irrelevant relationship was seen between the Average payment Period (APP) Cash Conversion
Cycle(CCC) on Return on Assest recommending that Productivity increments when an expanded in these period The finding are steady with
past examinations. Hong Lon Le, Kie Trang Le, Nigoc Le, Khach Du, Dung Tran 31 August 2017 /2018, and Bab Shah , M Arif Gujar, Najam
uddin sohu 3 March 2018, and Linedelwa Makoni, Zimasa Mabandla 2019, and Rafathannisa Syeda 21 September 2021.
Conclusion
27. Based on the findings of this study, it is suggested that managers of the Fertilizer firms in Pakistan should focus on improving their average
payment period and cash conversion cycle in order to enhance profitability. Additionally, it is suggested that future research should be
conducted to further examine the relationship between working capital management and profitability in the Fertilizer industry in Pakistan and to
explore other potential drivers of profitability in this sector.
Future Gap
Recommendation
• The consequence of our review have indisputably shown that there exists areas of strength for a between the administration of Working
Capital and the monetary progress of the chose organization.Through this investigation we can without hesitation declare that the execution of
effective systems for Working Capital Administration can essentially improve of the productivity of the firm. Also it is suggested that future
examination ought to be directed to additionally look at the connection between Working Capital Administration and productivity in the
fertilizer business in Pakistan and to investigate other expected drivers of productivity in this area.