A study on relationship between working capital and profitability
Autor: | Jaber Ghanbari, Hassan Ghodrati |
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Jazyk: | angličtina |
Rok vydání: | 2014 |
Předmět: |
media_common.quotation_subject
Cycle of cash conversion lcsh:HF5735-5746 Risk-adjusted return on capital Working capital Monetary economics lcsh:Business records management Investment (macroeconomics) General Business Management and Accounting Commerce Stock exchange Cash Capital employed Economics Profitability index Profitability Collecting receivable period Return on capital employed Investment media_common |
Zdroj: | Management Science Letters, Vol 4, Iss 8, Pp 1675-1684 (2014) |
ISSN: | 1923-9343 1923-2934 |
Popis: | Article history: Received January 20, 2014 Accepted 5 July 2014 Available online July 14 2014 This paper studies the relationship between working capital management and profitability of accepted corporations in Tehran Stock Exchange over the period 2008-2012. The study selected 66 firms as a statistical sample based on Cochran formula and simple random selection. In this study, variables including the average period of collecting accordance, periods of circulation of inventories, the average period of debt payment, and cycle of cash conversion on the factories operating profits are studied. The research method is applied and collection of data is solidarity, the Pierson and Regression solidarity are used. Results show that variables of capital investment management and profitability were in opposite direction. If the period of collecting accordance, period of debt payment, period of circulation of inventories and the cycle of cash conversion increase, it decreases the period profitability and the manager can decrease the period of debt payment, period of cash conversion to the least amount of positive value for affiliate. © 2014 Growing Science Ltd. All rights reserved. |
Databáze: | OpenAIRE |
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