The Effect of Working Capital Management on Profitability in Companies listed on the Tehran Stock Exchange
Purpose: The present study aims to assess the effect of working capital management on the firm's profitability in the companies listed on the Tehran stock exchange. Methodology: The study sample comprised 125 companies studied between 2014 and 2019. In this study, the variable "net income...
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| Format: | Article |
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Ayandegan Institute of Higher Education, Tonekabon,
2020-11-01
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| Series: | مدیریت نوآوری و راهبردهای عملیاتی |
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| Online Access: | http://www.journal-imos.ir/article_126132_f36ab393ed294885dbf55024432a54f3.pdf |
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| author | Seyed Mojtaba Kavoosi Davoodi Yasin Seraj Zeynab Esmaili Dehkalani |
| author_facet | Seyed Mojtaba Kavoosi Davoodi Yasin Seraj Zeynab Esmaili Dehkalani |
| author_sort | Seyed Mojtaba Kavoosi Davoodi |
| collection | DOAJ |
| description | Purpose: The present study aims to assess the effect of working capital management on the firm's profitability in the companies listed on the Tehran stock exchange. Methodology: The study sample comprised 125 companies studied between 2014 and 2019. In this study, the variable "net income before deducting interest and taxes to total assets" as a measure of the profitability of the variables, the period of collection of receivables, inventory turnover period as capital management criteria in circulation in variables, firm size, sales growth, the ratio of current assets to current liabilities ratio of financial debt to total assets and operating profit were used as the control variable. Findings: This study showed a significant inverse relationship between the profitability of companies with receivables collection periods and those with inventory turnover periods. Managers can reduce the period with the debt collection company to stay within reasonable limits and increase profitability. Originality/Value: It is expected that companies, using proper management of working capital, take steps to increase the company's value and thus increase its shareholders' wealth. |
| format | Article |
| id | doaj-art-21d262da457e405581377043b536aed2 |
| institution | Kabale University |
| issn | 2783-1345 2717-4581 |
| language | fas |
| publishDate | 2020-11-01 |
| publisher | Ayandegan Institute of Higher Education, Tonekabon, |
| record_format | Article |
| series | مدیریت نوآوری و راهبردهای عملیاتی |
| spelling | doaj-art-21d262da457e405581377043b536aed22025-01-30T14:59:14ZfasAyandegan Institute of Higher Education, Tonekabon,مدیریت نوآوری و راهبردهای عملیاتی2783-13452717-45812020-11-011328429610.22105/imos.2021.272998.1035126132The Effect of Working Capital Management on Profitability in Companies listed on the Tehran Stock ExchangeSeyed Mojtaba Kavoosi Davoodi0Yasin Seraj1Zeynab Esmaili Dehkalani2Department of Management, Farvardin University, Ghaemshahr, Iran.Department of Management, Farvardin University, Ghaemshahr, Iran.Department of Management, Sari Science and Research Branch, Islamic Azad University, Sari, Iran.Purpose: The present study aims to assess the effect of working capital management on the firm's profitability in the companies listed on the Tehran stock exchange. Methodology: The study sample comprised 125 companies studied between 2014 and 2019. In this study, the variable "net income before deducting interest and taxes to total assets" as a measure of the profitability of the variables, the period of collection of receivables, inventory turnover period as capital management criteria in circulation in variables, firm size, sales growth, the ratio of current assets to current liabilities ratio of financial debt to total assets and operating profit were used as the control variable. Findings: This study showed a significant inverse relationship between the profitability of companies with receivables collection periods and those with inventory turnover periods. Managers can reduce the period with the debt collection company to stay within reasonable limits and increase profitability. Originality/Value: It is expected that companies, using proper management of working capital, take steps to increase the company's value and thus increase its shareholders' wealth.http://www.journal-imos.ir/article_126132_f36ab393ed294885dbf55024432a54f3.pdfinventory turnover periodreceivables collection periodworking capitalprofitability |
| spellingShingle | Seyed Mojtaba Kavoosi Davoodi Yasin Seraj Zeynab Esmaili Dehkalani The Effect of Working Capital Management on Profitability in Companies listed on the Tehran Stock Exchange مدیریت نوآوری و راهبردهای عملیاتی inventory turnover period receivables collection period working capital profitability |
| title | The Effect of Working Capital Management on Profitability in Companies listed on the Tehran Stock Exchange |
| title_full | The Effect of Working Capital Management on Profitability in Companies listed on the Tehran Stock Exchange |
| title_fullStr | The Effect of Working Capital Management on Profitability in Companies listed on the Tehran Stock Exchange |
| title_full_unstemmed | The Effect of Working Capital Management on Profitability in Companies listed on the Tehran Stock Exchange |
| title_short | The Effect of Working Capital Management on Profitability in Companies listed on the Tehran Stock Exchange |
| title_sort | effect of working capital management on profitability in companies listed on the tehran stock exchange |
| topic | inventory turnover period receivables collection period working capital profitability |
| url | http://www.journal-imos.ir/article_126132_f36ab393ed294885dbf55024432a54f3.pdf |
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