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Working Capital Management And Profitability: A Case Of Alba County Companies

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  • Adina Elena DănuleÅ£iu

Abstract

The purpose of this study is to analyze the efficiency of working capital management of companies from Alba County. The relation between the efficiency of the working capital management and profitability is examined using Pearson correlation analyses and using a sample of 20 annual financial statements of companies covering period 2004-2008. The conclusion to our study is that there is a weak negative liniar correlation between working capital management indicators and profitability rates.

Suggested Citation

  • Adina Elena DănuleÅ£iu, 2010. "Working Capital Management And Profitability: A Case Of Alba County Companies," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(12), pages 1-36.
    • Handle: RePEc:alu:journl:v:1:y:2010:i:12:p:36
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    References listed on IDEAS

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    1. Pedro Juan García‐Teruel & Pedro Martínez‐Solano, 2007. "Effects of working capital management on SME profitability," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 3(2), pages 164-177, April.
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    Cited by:

    1. Nasser A. Alsulayhim, 2019. "The Relationship between Working Capital Management and Profitability," International Business Research, Canadian Center of Science and Education, vol. 12(8), pages 142-152, August.
    2. Walter Gachira & Washington Chiwanzwa & Dingilizwe Nkomo & Runesu Chikore, 2014. "Working Capital Management and the Profitability of Non- Financial Firms Listed on the Zimbabwe Stock Exchange (ZSE)," European Journal of Business and Economics, Central Bohemia University, vol. 9(2), pages 5171:9-5171, November.
    3. Mahdi Salehi & Reza Ghorbanzadeh, 2016. "The influence of firms' capital expenditure on firms' working capital management," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(3), pages 287-301.
    4. Alin Constantin RADASANU, 2015. "Working Capital And Corporate Strategy Patterns In Working Capital Of Romanian Pharmaceutical Companies Quoted On Bucharest Stock Exchange," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 89-103, September.
    5. Hamza Aslam Butt, 2014. "Impact of Working Capital Management on Profitability of Chemical Sector of Pakistan," International Journal of Social Sciences and Management Studies (IJSSMS), The Economics and Social Development Organization (TESDO), vol. 1(2), pages 67-79, June.

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    More about this item

    Keywords

    working capital; profitability; Days Sales Outstanding; Days Inventory Outstanding; Days Payable Outstanding; Days Working Capital;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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