Original title: Working capital and profitability of manufacturing companies
Translated title: Working capital management`s effect on profitability
Authors: Kaikaryte, Gabija ; Procházka, David (advisor) ; Žárová, Marcela (referee)
Document type: Master’s theses
Year: 2017
Language: eng
Publisher: Vysoká škola ekonomická v Praze
Abstract: The financial state of the most companies was significantly challenged by the last decade. Thus, financial managers must be aware of all factors that can contribute to the firm`s profitability in order to fight unstable economical environment. Working capital management`s effect on profitability has been raised recently and its importance is already known. This thesis aims to dig deeper into the relationship between working capital management and firm`s profitability across different sectors and different time periods. The subject for the empirical analysis are 908 UK manufacturing and 315 construction firms during the period of 2006-2013. The results indicate about the strong negative relationship between working capital, measured as cash conversion cycle (CCC) and gross operating profitability. Thus, it is an indicator that working capital and its characteristics must be included in the firm`s financial planning.
Keywords: Business cycle; Profitability; Working capital; Business cycle; Profitability; Working capital

Institution: University of Economics, Prague (web)
Document availability information: Available in the digital repository of the University of Economics, Prague.
Original record: http://www.vse.cz/vskp/eid/70805

Permalink: http://www.nusl.cz/ntk/nusl-359267


The record appears in these collections:
Universities and colleges > Public universities > University of Economics, Prague
Academic theses (ETDs) > Master’s theses