The impact of working capital management on corporate profitability and liquidity: evidence from the automobile and e-commerce industries

This paper empirically analyses key differences in Working Capital Management (WCM) in the automobile and e-commerce industries. Furthermore, the impact of WCM on Profitability and Liquidity is examined. The results have shown that there are significant differences in WCM between industries, as meas...

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Bibliographic Details
Main Author: Przygoda, Robert (author)
Format: masterThesis
Language:eng
Published: 2022
Subjects:
Cash conversion cycle
E-commerce
Financial statement analysis
Working capital management
Profitability
Industries
Liquidity
Automobile
Return on asset
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
Online Access:http://hdl.handle.net/10362/138689
Country:Portugal
Oai:oai:run.unl.pt:10362/138689
Description
Summary:This paper empirically analyses key differences in Working Capital Management (WCM) in the automobile and e-commerce industries. Furthermore, the impact of WCM on Profitability and Liquidity is examined. The results have shown that there are significant differences in WCM between industries, as measured by the Cash Conversion Cycle (CCC). At the same time, differences in the financial structure could also be identified. The multivariate analysis showed that there is a significant negative relationship between CCC and Return on Assets in the automobile industry, but not e-commerce. Moreover, a significant relation between the CCC components and the Quick Ratio was demonstrated.

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