Department of Accounting and Finance

URI for this collectionhttps://rps.wku.edu.et/handle/123456789/46627

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Has files: YesSubject: search.filters.subject.working capital

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    IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABLITY: EVIDENCE FROM SELECTED MANUFACTURING COMPANIES IN SNNPRS, ETHILOPA
    (wolkite university, 2019-04-08) Abiyot Gossaye Teka
    Working capital management is the administration of current assets and current liabilities and it is directly affects the liquidity and profitability of company. Hence, efficient working capital management involves excessive planning and controlling and it is very important to equalize between current assets and current liabilities to eradicate the risk of insolvency. The objective of this study is to examine the impact of working capital management on firms’ profitability and review the statistical significance between components of working capital management. In light of this aim the thesis implement quantitative method of research approaches to test the study hypothesis. Hence, the study used survey of companies audited financial statements. The purposive sampling method was used. Consequently, the study selected a sample of 11 companies for the period of eight years (2010-2017). Data was analyzed on quantitative basis using descriptive and regression analysis (Pooled ordinary least square) method was used. It observe the components of working capital for instance accounts receivable management, inventory holding period, accounts payable period, and cash conversion cycle in relation to ROA. In addition the study observes current ratio, company size, company growth and debit ratio as control variables. The key results from the study are; a negative significant at 5 percent relationship between account receivable management and profitability. Cash conversion cycle have a negative and statically significant at 5 percent relation with profitability. Opposed to the research hypothesis, account payable period has a negative statically significant at 5 percent relation with profitability. The manufacturing company of SNNPRS, Ethiopia managers can increase profitability of their firms by limiting the time gap between a company’s expenditure for purchases of raw materials and the collection of sales of finished goods. In general the study recommended that firms should minimize working capital management components in order to maximize profitability.
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    THE IMPACT OF WORKING CAPITAL MANAGEMENT ON FIRM PROFITABILITY: EVIDENCE FROM AGRO PROCESSING IN HAWASSA CITY, ETHIOPIA
    (wolkite university, 2023-05-09) ASELEFECH TEKLE
    Working capital management is one of the most important and challenging aspect of the overall financial management that needs a series consideration in firm’s financial decision. Efficient management of working capital is a fundamental part of the overall corporate strategy in creating value. In light of this the purpose of this study was to examine the impact of working capital management on profitability of agro processing firm. In this study a sample of 10 agro processing firm was used. This sample was selected using purposive sampling technique. Document review was the data collection instruments. Data for this study was collected from the financial statements of the company listed on Hawassa for the year 2013-2022. Variables used in this study were inventory conversion period, accounts payable period, cash conversion cycle controlling for current ratio, firm leverage and sales growth. This study applied multiple linear regression analysis. The findings of the study revealed average payable period and inventory conversion period has significant impact and positive relation with profitability of firm and cash conversion cycle and current ratio have significant and negative relationship with the profitability. However, firm leverage and sales growth rate have not significant impact on the profitability of the firm. Thus, the study suggests that inventory conversion period direct relation with profitability may can be changed by reducing the rate of inflation.
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    ASSESSMENT OF WORKING CAPITAL MANAGEMENT PRACTICE IN FIKIR SPRING WATER
    (wolkite university, 2023-03-07) AMANUEL SHUMYE
    This study's primary objective was to assess the working capital management practice of Fiker Spring Water, a privately owned company it locate Agena near Wolkite town. This study was conducted by taking the whole target population as respondents (census method) For this study. primary data collection was done by the researcher. The student researcher gathered primary data sources through structured interviews with the finance manager and by distributing an open and closed-ended questionnaire to respondents. Primary data sources were analyzed and interpreted through descriptive research analysis using tables and percentages about working capital management practices in Fiker Spring Water. The researcher uses the descriptive method of data analysis. The finding of the study showed many strengths and weaknesses of the company (Fiker Spring Water). Finally, the finding of this paper showed that even if Fiker Spring Water selects many appealing cash control, inventory control, and receivable management techniques its overall working capital management practice in recent periods is weak and require further work. The student researcher recommends that organization should think of hiring qualified personnel for the position of financial management in their organizations.
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    IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABLITY: EVIDENCE FROM SELECTED MANUFACTURING COMPANIES IN SNNPRS, ETHILOPA
    (wolkite university, 2019-05-08) Abiyot Gossaye Teka
    Working capital management is the administration of current assets and current liabilities and it is directly affects the liquidity and profitability of company. Hence, efficient working capital management involves excessive planning and controlling and it is very important to equalize between current assets and current liabilities to eradicate the risk of insolvency. The objective of this study is to examine the impact of working capital management on firms’ profitability and review the statistical significance between components of working capital management. In light of this aim the thesis implement quantitative method of research approaches to test the study hypothesis. Hence, the study used survey of companies audited financial statements. The purposive sampling method was used. Consequently, the study selected a sample of 11 companies for the period of eight years (2010-2017). Data was analyzed on quantitative basis using descriptive and regression analysis (Pooled ordinary least square) method was used. It observe the components of working capital for instance accounts receivable management, inventory holding period, accounts payable period, and cash conversion cycle in relation to ROA. In addition the study observes current ratio, company size, company growth and debit ratio as control variables. The key results from the study are; a negative significant at 5 percent relationship between account receivable management and profitability. Cash conversion cycle have a negative and statically significant at 5 percent relation with profitability. Opposed to the research hypothesis, account payable period has a negative statically significant at 5 percent relation with profitability. The manufacturing company of SNNPRS, Ethiopia managers can increase profitability of their firms by limiting the time gap between a company’s expenditure for purchases of raw materials and the collection of sales of finished goods. In general the study recommended that firms should minimize working capital management components in order to maximize profitability.