Efektet E Menaxhimit TT Kapitalit Qarkullues NN Financimin Afatshkurttr Dhe PPrfitueshmmrinn E Firmave TT Biznesit (Effects of Working Capital Management on Short-Term Financing and Profitability of Business Firms)

2015 ◽  
Author(s):  
Fisnik Morina ◽  
Afrim Selimaj
Keyword(s):  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management

A Study on Working capital Management in Hindustan Petroleum Corporation Limited

2021 ◽  
pp. 164-168
Author(s):  
Sruthi B ◽  
Rashmi R
Keyword(s):  
Annual Report ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Effective Management ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
The Past ◽  
The Relationship

Working capital management is important for every organization as it refers to the effective management of current assets and current liabilities. The aim is to make sure that the firm is capable to continue its operations and it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses. In this paper, an attempt has been made to study the management of working capital in Hindustan Petroleum Corporation Limited, a leading public sector enterprise in India over a period of 10 years (That is from 2009-10 to 2018-19). The paper also attempts to study the components of working capital and analyze the relationship between liquidity and profitability of HPCL. The study is based on secondary data collected from annual report of HPCL for the past 10 years, Pearson correlation and regression model are used for this purpose. From the study it is found that there is a significant relationship between liquidity and profitability.

scholarly journals Working Capital Management Practices

2019 ◽  
Vol 8 (2S8) ◽  
pp. 156-161
Keyword(s):  
Management Practices ◽  
Secondary Data ◽  
Project Work ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Good Opportunity ◽  
Working Capital Management ◽  
Money Flow ◽  
The Relationship

VJ Engineers is one of the popular organizations in Chennai. Seeing the good opportunity to study financial systems and practices of VJ Engineers, it is relatively important to take up assignment on ‘WORKING CAPITAL MANAGEMENT IN VJ ENGINEERS’. During the project work, it is being analyzed the working capital position of this organization. [1],[ 3],[5] Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of Working capital management is to ensure that the firm is able to continue its operations and that it has sufficient money flow to satisfy both maturing short-term debt and upcoming operational expenses.The study of working capital management is very helpful for the organisation to know its liquidity position. The study is relevant to the organization to know the day to day expenditure. This study is relevant to give an idea to utilise the current assets.This study is also relevant to the student as they can use it as a reference. This report will help in conducting further research. Other researcher can use this project as secondary data uncovering of PDA incorporation in effects on police reports.

scholarly journals Management of current assets in the context of increasing the Enterprise’s Profitability

2015 ◽  
Vol 2 ◽  
pp. 27
Author(s):  
Iluta Arbidane
Keyword(s):  
Optimum Level ◽  
Regression Equations ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
Essential Condition ◽  
Efficient Management ◽  
A Company ◽  
Made In

<p class="R-AbstractKeywords">In order to ensure the financial sustainability of companies under current economic conditions successful management of current assets is crucial. In practice it is quite often observed that the decisions related to current assets management in Latvian companies are made in the short-term aspects without making analysis. Efficient management of working capital is an essential condition of rise in profitability of a company.  Potentialities of working capital management in the context of efficient running of business have not been studied in Latvia up until now. The main aim of this article is to examine the effect of working capital on profitability of Latvian companies. The results of the research that has been performed in relation to Latvian enterprises confirm the existence of a correlation between components of working capital and profitability. The developed regression equations meant for forecasting profitability of a company applying working capital management methods can be used by Latvian enterprises. It follows that managers of an enterprise can forecast indexes characterizing profit, managing components of working capital and maintaining it on the optimum level</p>

scholarly journals Working Capital Management Efficiency of Cement Sector of Pakistan

2011 ◽  
Vol 2 (5) ◽  
pp. 223-235 ◽  
Author(s):  
Talat Afza
Keyword(s):  
Efficiency Index ◽  
Total Efficiency ◽  
Target Level ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
Financial Decisions ◽  
Capital Efficiency

The corporate finance literature has traditionally focused on the study of long-term financial decisions. Researchers have particularly examined investments, capital structure, dividends or company valuation decisions, among other topics. However, short-term assets and liabilities are important components of total assets and needs to be carefully analyzed. Management of these short-term assets and liabilities warrants a careful investigation since the working capital management plays an important role for the firm’s profitability and risk as well as its value. It requires continuous management to maintain proper level in various components of working capital i.e. cash, receivables, inventory and payables etc. The present study is an attempt to evaluate the efficiency of the working capital management of cement sector of Pakistan for the period 1988-2008. Instead of employing the traditional ratios; working capital efficiency has been measured in terms of utilization index, performance index and total efficiency index as suggested by Bhattacharya (1997). This paper also tests the speed of achieving the target level of efficiency by an individual firm during the period of study using industry norms as the target level of efficiency. Findings of the study indicate that the cement sector as a whole did perform well during the study period.

scholarly journals ANALISIS OPTIMALISASI MODAL KERJA PT UNILEVER INDONESIA TBK

2021 ◽  
Vol 11 (1) ◽  
pp. 048
Author(s):  
Fera Maulina
Keyword(s):  
Raw Materials ◽  
Secondary Data ◽  
Financial Statements ◽  
Capital Requirements ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
Operational Process ◽  
The Real

ABSTRACT This study aims to determine working capital requirements and optimization of working capital at PT Unilever Indonesia Tbk. The form of research used is descriptive and uses secondary data obtained from PT Unilever Indonesia Tbk's 2015-2019 financial statements and other sources obtained from literature studies by studying books and journals that are related to the problem under study. The results showed that (1) PT Unilever Indonesia Tbk's need for working capital in 2016-2019 tends to increase. When compared with the available working capital (current assets), PT Unilever Indonesia is experiencing a lack of working capital to finance the company's operations. This lack of working capital will certainly cause PT Unilever Indonesia Tbk to experience liquidity problems, which is the inability to pay short-term obligations on time. Companies will seek credit as a source of funds in order to increase the fulfillment of current assets wealth needs in order to buy raw materials and even pay for employee salaries and other expenses. (2) PT Unilever Indonesia Tbk's optimal working capital in 2015-2018 tends to increase. The real working capital that is in the company is not optimal where the real working capital is not the same as the optimal working capital obtained. Real working capital less than optimal working capital will hamper or disrupt the smooth production or operational process because the company lacks funds. Even though the existing real working capital is not optimal, the amount obtained is not much lower than the optimal working capital.  Keywords: working capital management, workong capital requirements, optimization of working capital. ABSTRAK Penelitian ini bertujuan untuk mengetahui kebutuhan modal kerja dan optimalisasi modal kerja pada PT Unilever Indonesia Tbk. Bentuk penelitian yang digunakan adalah deskriptif dan menggunakan data sekunder yang diperoleh dari laporan keuangan PT Unilever Indonesia Tbk tahun 2015-2019 dan sumber lain yang diperoleh dari studi pustaka dengan mempelajari buku dan jurnal yang berkaitan dengan masalah yang diteliti. Hasil penelitian menunjukkan bahwa (1) Kebutuhan modal kerja PT Unilever Indonesia Tbk tahun 2016-2019 cenderung meningkat. Jika dibandingkan dengan modal kerja yang tersedia (aset lancar), PT Unilever Indonesia mengalami kekurangan modal kerja untuk membiayai operasional perusahaan. Kekurangan modal kerja ini tentunya akan menyebabkan PT Unilever Indonesia Tbk mengalami kesulitan likuiditas, yaitu ketidakmampuan membayar kewajiban jangka pendek tepat waktu. Perusahaan akan mencari kredit sebagai sumber dana guna meningkatkan pemenuhan kebutuhan kekayaan aset lancar guna membeli bahan baku bahkan membayar gaji karyawan dan biaya lainnya. (2) Modal kerja optimal PT Unilever Indonesia Tbk pada 2015-2018 cenderung meningkat. Modal kerja riil yang ada di perusahaan belum optimal dimana modal kerja riil tidak sama dengan modal kerja optimal yang diperoleh. Modal kerja riil yang kurang dari modal kerja optimal akan menghambat atau mengganggu kelancaran proses produksi atau operasional karena perusahaan kekurangan dana. Meskipun modal kerja riil yang ada belum optimal, namun jumlah yang diperoleh tidak jauh lebih rendah dari modal kerja optimal. Kata kunci: pengelolaan modal kerja, kebutuhan modal kerja, optimalisasi modal kerja

scholarly journals A comparison of strategies for working capital management of listed food companies from Northern Europe

2020 ◽  
Vol 29 (3) ◽  
Author(s):  
Serhiy Zabolotnyy ◽  
Timo Sipiläinen
Keyword(s):  
Financial Management ◽  
Business Environment ◽  
Northern Europe ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Risk And Return ◽  
Working Capital Management ◽  
The Cost ◽  
Synthetic Evaluation

The research presents the application of fuzzy logic for synthetic evaluation of strategies for working capital management of twelve food companies from Northern Europe in 2005–2015. A set of financial ratios formed an aggregated indicator reflecting the complexity of relationships between the level and structure of current assets and liabilities of a firm. Based on the proposed indicator, four types of strategies for working capital management were identified and characterized in terms of risk and return preferences. Only a few companies from the sample demonstrated a direct orientation on liquidity or value within their strategies for working capital management. To retain flexibility in short-term financial management, most firms applied moderate policies for current assets and liabilities that helped them in maintaining liquidity and reducing the cost of financing. The integrity of the proposed method for the synthetic evaluation of working capital management makes it a convenient managerial tool suitable for use in firms operating in a turbulent business environment.

Working capital management and managerial talent

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nacasius U. Ujah ◽  
Augustine Tarkom ◽  
Collins E. Okafor
Keyword(s):  
Social Capital ◽  
Financial Constraints ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
Content Type ◽  
Cash Conversion Cycle ◽  
Managerial Talent

PurposeTalented managers arguably remain quintessential to firm value and performance. While the literature offers evidence for the long-term orientation of talented managers, there is a paucity of evidence on the short-term performance of managers. Here, we examine the relationship between managerial talent and working capital management (WCM).Design/methodology/approachThis study primarily employs a panel fixed-effect method controlling for firm-year and firm-industry for non-financial and non-utility firms for the years 1980 through 2016. Also, the authors control of potential bias that may impact the result. These controls include social capital, financial constraints and tests for endogeneity and spurious correlation.FindingsThe authors find the association between managerial talent and WCM to be positive and significant. The results indicate that talented managers have a higher cash conversion cycle. The empirical evidence still holds after controlling for social capital, religiosity and financial constraints. Also, the evidence still holds by employing an interaction term between Tobin's Q as a proxy for investment opportunities and talented managers.Practical implicationsThe finding may lend credence to executive contracts. Human nature, by default, is only vested on a net benefit for self-aggrandization. Self-aggrandization can be evident through structures in managerial contracts. These contracts usually tie consequences to long-term growths. If a benefit is offered based on short-term operational goals, talented managers may do more to the management of working capital.Originality/valueIn the managerial talent literature, talents reflect a holistic picture of one that can succeed in both the short-term and long-term goals of a company. Here, the authors show that talented managers are inefficient in meeting short-term goal – working capital management. Thus, the authors add to the research by providing evidence that talented managers are myopic.

MANAGING TARGET THE CASH BALANCE IN CONSTRUCTION FIRMS USING A FUZZY REGRESSION APPROACH

2009 ◽  
Vol 17 (05) ◽  
pp. 667-684 ◽  
Author(s):  
CHENG-WU CHEN ◽  
MORRIS H. L. WANG ◽  
JENG-WEN LIN
Keyword(s):  
Fuzzy Model ◽  
Fuzzy Regression ◽  
Capital Management ◽  
Working Capital ◽  
Cash Balance ◽  
Short Term ◽  
Working Capital Management ◽  
Construction Firms ◽  
Financial Strategies ◽  
S Curve

Construction firms that work on a contractual basis are generally more concerned with short-term rather than long-term financial strategies. The main focus in short-term financial strategies is on working capital management (WCM). Cash management is a major factor for achieving good liquidity and profitability. In this study we take into consideration the cash component of working capital management based on the target cash balance. We develop a practical model that should allow Taiwan construction firms to utilize the currently available cash and assets at any point in time in the most rational way. To help understand the issues involved, we first introduce a model developed by Miller and Orr. The relationship between project duration and progress towards completion is most effectively represented in practical construction management by the S-curve. Thus, in this study we plot the fuzzy S-curve regression based on the Takagi-Sugeno (T-S) fuzzy model. The practicality of the model is demonstrated using project cash flow and progress payment records from a sample project. The data are obtained from the Taipei City Government's Department of Rapid Transit Systems. Some tentative conclusions concerning the model are also given.

scholarly journals Management Strategies of Working Capital in Polish Services Providing Companies

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Management Strategies ◽  
Financial Indicators ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
Financial Condition ◽  
Tourism Sector ◽  
Liquid Element ◽  
Research Period

Net working capital aims at keeping companies in good financial condition and, above all, ensuring their financial security. It appears in micro, small, medium and large companies operating in every sector. In the case of services providing companies working capital management is very limited as in such businesses there is no inventory, which is the least liquid element of current assets. Therefore, in such companies working capital management strategies are based on the management of short-term receivables, short-term investments and short-term liabilities. In the paper services providing companies operating in the transport and tourism sectors have been presented. The research period covers the years 2016-2018. By means of selected statistical methods and appropriate financial indicators it was found that transport companies used different working capital management strategies compared to companies operating in the tourism sector.

scholarly journals Working Capital Management in Blue Bharath Exim Pvt.Ltd, Chennai

2019 ◽  
Vol 8 (2S8) ◽  
pp. 148-152
Keyword(s):  
Excessive Amount ◽  
Future Research ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
The Future ◽  
Administration Procedure

Working capital is the distinction between current resources and current liabilities, which is a piece of capital that needn't to satisfy for the time being. That is, working capital mirrors the overall security of short-term capital. We can be educated on the endeavor's money related hazard, by the benefit of working capital and some related pointers. By and large, the additionally working capital endeavors possess, the less budgetary hazard they may confront. Be that as it may, an excessive amount of working capital isn't reasonable for the undertakings who wish a long-term advancement, as the lost benefit. We propose to improve the working capital administration, for its significance and money related vigor. Notwithstanding, there are seldom looks into associated with developing a working capital administration framework. [1],[ 3],[5] To consummate the administration procedure, we propose an effective working capital administration framework on execution, which might be a changing cycle. We would like to give a reference to the future research and the board rehearses

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