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The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia

Author

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  • Radojko LUKIC

    () (University of Belgrade, Serbia)

Abstract

The efficiency of working assets (working capital) management is one of the crucial factors of performance in trade. It is quite understandable when one takes into account the fact that the biggest part of total assets of the trading companies is related to working assets, i.e. inventories as a part of current assets. With the application of appropriate methodology this paper explores determinants and impact of efficiency of working assets management on the profitability of trade in Serbia for the 2008-2012 period, based on an example of commercial companies which are required by law to submit the final financial statements. General conclusion is that there was insufficient efficiency of working assets in observed period, which was reflected on the profitability of trade in Serbia. Related to this, it is necessary to take all relevant measures to improve the efficiency of working assets in order to increase the profitability of trade in Serbia. This especially applies to the application of modern information and communication technologies, particularly in the supply chain management (enterprise resource planning system, RFID).

Suggested Citation

  • Radojko LUKIC, 2013. "The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(5), pages 731-745, December.
  • Handle: RePEc:rom:rmcimn:v:14:y:2013:i:5:p:731-745
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    File URL: http://rmci.ase.ro/no14vol5/07.pdf
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    References listed on IDEAS

    as
    1. Chisti Khalid Ashraf, 2012. "The Relationship between Working Capital Efficiency and Profitability," Advances In Management, Advances in Management, vol. 5(12), December.
    2. Chisti Khalid ASHRAF, 2012. "The relationship between working capital efficiency and profitability," The Journal of Accounting and Management, Danubius University of Galati, issue 3, pages 21-45, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Radojko LUKIC, 2016. "The Analysis of the Efficiency of Capital Investments in Trade of Serbia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(1), pages 12-30, March.
    2. Radojko LUKIC, 2015. "The Analysis of Efficiency of Managing Inventories in Trade in Serbia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 222-238, May.
    3. repec:rom:bemann:v:6:y:2016:i:1:p:16-35 is not listed on IDEAS

    More about this item

    Keywords

    accounts receivable; inventory; current liquidity; net working assets; cash cycle.;

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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