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Working Capital Management Analysis

779 Words4 Pages

6. 2005 FILBECK, G,. & KR5UEGER, M.T. AN ANLYSIS OF W2ORKING CAZPITAL MANAGEMENT REOLULTS ACROSS INDUSTRIES. MID-AMERICAN JOURNAL OF BUSINESS,(2006).
Relationship between efficiency level of working capital management and return on total assets the fact that the sales of firms have decreased and cash flows have slowed down in this globule crisis emphasizes the importance of working flows have slowed down in this globule crises emphasizes the importance of working capital management for financial decision-taking mechanisms. While obscurity for the future keeps firms away from steady capital investment;;toss, the only intervention area is like3luy to be the assets group called working capital in terms of increasing and preserving profitability;, or intervening with decline.
With respect to these asset group, new applications as well as traditional applications should be developed to; shorten the cash converse; on cycle. Moreover it will be possible to maintain the capital resources allocated to ;working capital at minimum level by improving short term …show more content…

;the results of the statistical test of the hypotheses indicate that there is a negative significant relation between number of days accounts receivable and profitability, a negative significant relation between inventory turnover in days and profitability, a direct significant relation between number of day’s accounts payable and profitability, and there is a negative significant relation between cash conversion cycle and profitability and there is a negative significant relation between cash conversion cycle and profitability. The results of the research show that in the studies companies, there is a significant relation between working capital management and profitability; and working capital management has a great effect on the profitability of the companies and the managers can create value for shareholders by means of decreasing receivable accounts and

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