YETA ACCOUNT RECEIVABLE TURNOVER RATIO. PROFESSIONAL
This can only be possible with some professional advice and supervision. It is generally argued that firms need to accelerate their cash collections and slowdown their payments. The collection and payment policies of the firms in manufacturing sectors, in general, need to be thoroughly reviewed. The major recommendation of this study is that working capital management should be the concern of all the manufacturing sectors firms and need to be given due importance. On the behalf of study of payables management it was observed and concluded that the consolidated breweries was better off than Guinness Nigeria as regard liquidity and payment to creditors as their credit periods were much shorter than the Guinness Nigeria, nevertheless the Guinness Nigeria derived benefits from the massive credit periods. On the behalf of Receivable Management for the companies, it can be concluded that, undoubtedly, the Guinness Nigeria was much more efficient in the management of cash as compared to the Consolidated breweries which was laming in this regard and was way behind it. Cash balances were comparatively high in both cases. It was also deduced that inventories and debtors were very high in case of the Guinness Nigeria whereas current liabilities where still on the moderate level except in 2013 which recorded a higher current liabilities than the current asset. The result of the test analyzed indicates Guinness Nigeria possessed huge amounts of current assets than Consolidated breweries. However, ratio analysis was used to analyze the data collected which is the best statistical techniques for working capital management. Secondary data were employed in this study from journals, textbooks and annual reports of the selected companies. The study aimed to examine the cost of working capital and the effect on firm performance and to take a critical view of the adopted liquidity measures of the Nigeria firm and attempt to see how it has been achieved. This research work carry out a comparative analysis on working capital management of brewery companies in Nigeria. Furthermore, the efficient management and least cost financing can increase the profitability of textile companies.
There is a great need for the efficient policies for the management of working capital. The study also concludes that firms in Pakistan are following conservative working capital management policy due to shortage of funds thus, the firms need to concentrate on the collection policies. The results have indicated that sales growth, receivables turnover, payables turnover, inventory turnover, gross working capital turnover, current assets turnover, and financial debt ratio have a significant impact on the profitability of the textile companies of Pakistan. All the manufacturing firms generally face problems with their collection and payments schedule. For the above said purpose, the data of 30 textile sector companies listed at Karachi Stock Exchange having maximum market share were analyzed. In this article the authors have tried to find out the impact of working capital management on the performance of textile sector companies. Working capital has a major role in the performance of any business entity. The profitability and sustainability of the textile sector is very important for the economic growth of Pakistan. Textile sector is considered as the backbone of Pakistani economy.
Lack of appropriate skills has also hindered the use of techniques like just-in-time (JIT) for efficient inventory management. The study further established that more than 67% of the out-grower companies hold their inventories for more than 60 days before converting them into receivables due to large order sizes targeting economies of scale and bulk discounts. Secondary data was also collected to supplement the primary data. Using a descriptive cross-sectional research design, a total of 30 managerial staff members from the ten out-grower companies in Kenya were surveyed by way of completing a semi-structured questionnaire. This study contributes to literature by focusing on the small and medium-sized organizations like the sugar-cane out-grower companies in Kenya whose unique characteristics include very high levels of current assets, fewer alternative sources of external finance and dependency on short-term finance. These previous studies have focused their analysis on large firms. Some previous studies have used this measure to analyze whether shortening the cash conversion cycle has positive or negative effects on the firm’s profitability.
Decisions about how much to invest in the customer and inventory accounts, and how much credit to accept from suppliers, are reflected in a firm’s cash conversion cycle.
0 kommentar(er)
