Working capital management and corporate profitibility of listed companies in South Africa

dc.contributor.author	Ngwenya, Sam
dc.date.accessioned	2016-12-20T06:47:28Z
dc.date.available	2016-12-20T06:47:28Z
dc.date.issued	2010
dc.identifier.citation	Virtus Interpress	en
dc.identifier.issn	1810-3056
dc.identifier.uri	http://hdl.handle.net/10500/21877
dc.description.abstract	Working capital management plays a significant role in creating value for shareholders. The objective of this study was to investigate the relationship between working capital management and profitability of companies listed on the Johannesburg Stock Exchange for the period 1998 to 2008. The results revealed a statistically negative significant relationship between profitability (as measured through gross operating profit), the cash conversion cycle, the net trade cycle and number of days accounts receivable. The results further revealed a positive significant relationship between the number of days accounts payable, the number of days inventory and gross operating profit. The results suggest that managers can increase their companies’ profitability by effectively managing the cash conversion cycle and/or the net trade cycle.	en
dc.language.iso	en	en
dc.subject	working capital management, cash conversion cycle, net trade cycle, profitability	en
dc.title	Working capital management and corporate profitibility of listed companies in South Africa	en
dc.type	Article	en
dc.description.department	Finance, Risk Management and Banking	en