Working Capital Management Performance; - A Study on Beverage Food & Tobacco and Manufacturing Sectors in Colombo Stock Exchange
Year: 2013
Type: preprint
Abstract: ;- Owing to the financial crisis, companies highlight the importance of working capital management (WCM) as an important part of short-term financial management. Available evidence suggest that working capital management has not been discussed widely from the point of view of management,although many researchers have shown that short-term financial management has a clear effect on the profitability of a firm. The efficient WCM is the most crucial factor in maintaining survival, liquidity, solvency and profitability of the concerned business organization. The objective of this study is to find out the efficiency of WC in some listed Beverage food & tobacco and manufacturing sector in CSE. In this study, we have select a sample of 12 Sri Lankan listed companies on Colombo Stock Exchange for a period of years from 2007– 2011.We investigate the different variables of working capital management by employing of inventory conversion period (ICP), debtors’ conversion period (DCP), creditors’ conversion period (CCP) and cash conversion cycles (CCC). In the analysis, it is found that on the basis of ICP, CDP and CCC Manufacturing sector is the best sector than Beverage food & Tobacco sector. On the other hand, based on DCP, it is found that Beverage food & Tobacco sector is the best sector than the manufacturing sector. Moreover, outcome of the research would be helpful to the academicians, managers practitioners, researchers, planners, and policymakers who are involved in to set tradeoff between their liquidity and their performance of firms.
Source: SSRN Electronic Journal
Author: Elangkumaran Periyathampy
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2581462013