The Impact of Working Capital Management on Profitability of
Companies

Ζώη, Χρυσάνθη; Zoi, Chrysanthi

dc.contributor.author	Ζώη, Χρυσάνθη	el
dc.contributor.author	Zoi, Chrysanthi	en
dc.date.accessioned	2018-06-28T09:20:10Z
dc.date.available	2018-06-28T09:20:10Z
dc.date.issued	2018-06-28
dc.identifier.uri	https://dspace.lib.ntua.gr/xmlui/handle/123456789/47143
dc.identifier.uri	http://dx.doi.org/10.26240/heal.ntua.8522
dc.description	Εθνικό Μετσόβιο Πολυτεχνείο--Μεταπτυχιακή Εργασία. Διεπιστημονικό-Διατμηματικό Πρόγραμμα Μεταπτυχιακών Σπουδών (Δ.Π.Μ.Σ.) “Διοίκηση Επιχειρήσεων (ΜΒΑ)”	el
dc.rights	Default License
dc.subject	Working	en
dc.subject	Capital	el
dc.subject	Profitability	el
dc.subject	Food industry	el
dc.subject	Eurozone	el
dc.subject	Κεφάλαιο κίνησης	el
dc.subject	Αποτελεσματικότητα	el
dc.subject	Δερδοφορία	el
dc.subject	Κλάδος τροφίμων και ποτών	el
dc.subject	Ευρωζώνη	el
dc.title	The Impact of Working Capital Management on Profitability of Companies	en
dc.title	Case of Eurozone Food and Beverage Industry	el
heal.type	masterThesis
heal.classification	Finance	en
heal.language	en
heal.access	campus
heal.recordProvider	ntua	el
heal.publicationDate	2018-02-23
heal.abstract	Working Capital Management has its impact on the profitability of the firm especially in terms of liquidity. This study aims to examine the effect of different variables of working capital management including Days Sales Outstanding (DSO) (ie collection period), Days Inventory Outstanding (DIO), Days Payable outstanding (DPO), Cash Conversion Cycle (CCC) and Current Ratio (CR) as liquidity measure on the profitability measured by Return on Equity (ROE) and Return on Assets (ROA) on firms. In this research a sample of 119 Firms throughout EuroZone operating in the field of Food and Beverages has been selected for a period of five (5) years from 2010 - 2014. Furthermore, size of the company (calculated by logarithm of sales), debt ratio and interest coverage ratio as financial leverage ratios have been used as control variables in order to establish if there is a relationship that is of statistical significant between profitability and capital structure in terms of long term sustainability of a firm. The data was analyzed using SPSS (version 20.0), estimation equation by both correlation analysis and pooled panel data regression models of cross-sectional and time series data were used for analysis. The results of the research show that there is a significant impact of the working capital management on profitability of company. Therefore, managers may enhance the profitability of their firms by minimizing the inventory turnover, account receivables ratio and by decreasing creditors turnover ratios but there is no significant effect of increasing or decreasing the current ratio on profitability. As a result managers can create profits for their firms by treating wisely the cash conversion cycle and keeping Number of Days Accounts Receivables, Number of Days Accounts payables and Number of Days to an optimum level. We also find that there is a significant positive relationship between size of the firm and profitability. This study will benefit the companies in food and beverages production and retail in the management of their working capital in such an efficient manner so that they can multiply their profitability	en
heal.advisorName	Παπαδάκη, Αφροδίτη	el
heal.committeeMemberName	Σιουγλέ, Γεωργία	el
heal.committeeMemberName	Τζόβας, Χρήστος	el
heal.academicPublisher	Εθνικό Μετσόβιο Πολυτεχνείο. Σχολή Μηχανολόγων Μηχανικών	el
heal.academicPublisherID	ntua
heal.numberOfPages	93 σ.	el
heal.fullTextAvailability	true