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The Effect of working capital management towards the profitability of the companies in the bottled water industry

Wahyuni, Fenny (2007) The Effect of working capital management towards the profitability of the companies in the bottled water industry. Bachelor thesis, Petra Christian University.

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Abstract

The tight competition in bottled water industry lead the writer to concern more about the profitability of the companies. Most companies usually do not look at working capital management as a factor in profitability. The writer believes that working capital management is one of the important factors that affect the company?s profitability though it might create a dilemma for the company whether it will increase the profitability or increase the risk of insolvency. The writer examined the impact of working capital management towards the company?s profitability to help determine the most suitable working capital to be invested. The key variables used in this analysis are average age of inventory, average collection period, average payment period, and the cash conversion cycle. Through the analysis by using the multiple regressions, a significant correlation has been found by using the ROA as the dependent variable and the average collection period, average payment period, and the cash conversion cycle as the independent variables. The average age of inventory was not used because it is not relevant enough because there was multicollinearity among the variables.

Item Type: Thesis (Bachelor)
Uncontrolled Keywords: working capital management, companys profitability, ROA
Subjects: UNSPECIFIED
Divisions: UNSPECIFIED
Depositing User: Admin
Date Deposited: 23 Mar 2011 18:48
Last Modified: 29 Mar 2011 10:59
URI: http://repository.petra.ac.id/id/eprint/11418

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