Masters of Science

URI for this collectionhttps://rps.wku.edu.et/handle/987654321/9

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Start date: 2020Subject: search.filters.subject.profitability

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    THE IMPACT OF WORKING CAPITAL MANAGEMENT ON FIRM PROFITABILITY: EVIDENCE FROM AGRO PROCESSING IN HAWASSA CITY, ETHIOPIA
    (Wolkite University, 2023-06) 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 overallcorporate 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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    Determinants OF PROFITABILITY OF ETHIOPIAN INSURANCE COMPANY
    (wolkite universty, 2022-05-16) MELSE KASSA
    Ethiopian insurance sector does not grow as expected and cannot take a major part for the economic development and it contributes less than 1% to country’s total GDP; therefore, the purpose of this study focuses on identifying the Determinants factors of Ethiopia Insurance Corporations profitability. Time-series data of Ethiopian Insurance Corporation from 1989 to 2019 was analyzed using multiple linear regression method. In this study, secondary data was analyzed to investigate the major factors of insurance profitability. To answer the above proposed main objective, descriptive statistics, diagnostic tests and OLS regression method have been run using E-Views 9 to test hypothesis of tangibility of asset, leverage ratio, liquidity ratio, insurance size, loss ratio, GDP gross rate and inflation rate on profitability measure i.e. (ROA) and quantitative research approach were used. The regression results shows that tangibility of asset, liquidity ratio, leverage ratio, GDP gross rate and inflation rate were significant at 99 percent level of significance but; insurance size and loss ratio have insignificant. The regression shows that all explanatory variables have negative effect on the profitability except leverage ratio and liquidity ratio. So, insurance companies in Ethiopia should pay due attention in using more debt because interest rate are tax free. Ethiopian Insurance Corporations in order to maximize profitability should not require large volume of fixed assets or do not require beyond optimum level of fixed assets. Ethiopian Insurance Corporation should increase the awareness level of insurance among majority of the citizens including rural area and investing in risky investments which may in turn increase profitability. Finally Government should pay due attention in reducing inflation rate by participating in price setting in market and decrease exchange rate because most of the goods are importable otherwise profitability is reduced by increasing the price.