cash management and profitability of

  • Cash Conversion Cycle and Firm's Profitability An

    management and particularly the cash management. Furthermore, the cash conversion cycle, actually, is the most significant part in working capital management. On the other side, working capital management is essential dynamic for a firm. There are direct and indirect effects on a firm's profitability and risk, and consequently its value. It measures the time it takes to convert cash into

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  • Working Capital Management And Profitability

    06/12/2019 · As a result, in addition to profitability, liquidity management is vital for ongoing concern. Working capital management comprises of inventory management, cash management and credit management. A detailed of those components will be discussed below 2.1.1 INVENTORY MANAGEMENT. Inventory management is essential for businesses, without proper control and management

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  • [] Cash Management and Corporate Profitability A

    Cash has always being disregarded in financial decision making since it involves investment and financing in short term period. However, it is an important component in firm financial management decision. This study therefore investigates empirically the relationship between cash management and profitability in listed manufacturing companies in Nigeria.

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  • Chapter 8. CASH MANAGEMENT AND THE TREASURY FUNCTION

    Cash management has the following purposes controlling spending in the aggregate, implementing the budget efficiently, minimizing of the cost of government borrowing, and maximizing the opportunity cost of resources (the last two purposes yielding interest). Control of cash is a key element in macroeconomic and budget management. However, as emphasized in chapter 5, it must be complemented by

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  • Cash Management and Corporate Profitability A Study of

    01/02/2012 · Cash Management and Corporate Profitability A Study of Selected Listed Manufacturing Firms in Nigeria Olubukunola Uwuigbe, Uwuigbe Uwalomwa, Ben-Caleb Egbide; Affiliations Olubukunola Uwuigbe Uwuigbe Uwalomwa Ben-Caleb Egbide. Journal volume & issue Vol. 8

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  • The Working Capital Management Finance Essay

    The result implies that there was a significant negative relationship between variables of the working capital management and profitability of the firm, meaning that the cash conversion cycle increases while profitability decreases. Thus, managers create a positive value for the shareholders by reducing the cash conversion cycle to a possible minimum level. Deloof (2003) on the other hand

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  • Impact of Liquidity on Profitability of Commercial Banks

    the trade-off between profitability and liquidity management (Bhunia & Khan, 2011). Liquidity risk threatens the solvency position of financial institutions. It also negatively affects the health of the institutions. There are two types of liquidity risks (i.e., first type and second type) arise in the financial institutions although they can raise the funds by running down their cash assets

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  • Cash Management Objectives Process Cash Balances

    Cash management is based on such liquidity/profitability trade-off, which contributes to an increase in shareholders' value in the long run. In other words, the trade-off means maintaining high liquidity and control over the cash balance for as long as possible, while the opportunity cost of holding it should be as low as possible. The objectives of cash management are Cash budget

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  • Cash Management HKIAAT

    management is therefore a balance between liquidity and profitability. Companies are strongly advised to prepare a cash budget to highlight the net cash position in the future and devise its cash management strategies with reference to the Miller-Orr model. Students are reminded that cash management is a concept within working capital management. The proper management of cash is part of

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  • The Concept of Cash Management MBA Knowledge Base

    Cash management may be defined as the ability of a management in recognizing the problems related with cash which may come across in future course of action, finding appropriate solution to curb such problems if they arise, and finally delegating these solutions to the competent authority for carrying them out. The choice between liquidity and profitability creates a state of confusion. It is

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  • What is Cash Management? Definition, Objectives, Models

    11/02/2019 · Definition Cash Management refers to the collection, handling, control and investment of the organizational cash and cash equivalents, to ensure optimum utilization of the firm's liquid resources. Money is the lifeline of the business, and therefore it is essential to maintain a sound cash flow position in the organization.

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  • Relationship between Cash Conversion Cycle (CCC) with Firm

    favorable Cash conversion cycle but Tobacco sector is at number one with the lowest value of Cash conversion cycle. The Pearson correlation and regression analysis is conducted for the empirically testing of the results. The results of the study show that the relationship of Cash conversion cycle with profitability

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  • THE IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY

    management on profitability. The study employed a quantitative research design, which was useful in establishing the relationship of working capital management on profitability. A sample of 60 employees was taken and the financial statement for the period years, 2010 up to 2015 was used. However, a total of 45 responses were

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  • Working Capital Management and Profitability An empirical

    Keywords Working Capital Management, Profitability, Cash Conversion Cycle 1. INTRODUCTION. Corporate financial decisions are about capital budgeting, capital structure and working capital management. Much attention is paid to capital budgeting and capital structure, which are about the management of long-term capital, than working capital management in finance literature. However

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  • Impact of Liquidity Management on Profitability

    Hypotheses tested different aspects of cash management and liquidity practices. Statistical analysis was conducted by using regression analysis of the change scores and profitability. Overall, the findings suggested that the adaptation of liquidity strategies do not have a significant impact on ROA. Only increased use of liquidity forecasting

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  • Research Paper Cash Management and Organizational

    Cash management is an indispensable tool which aims at establishing the financial position of the company. In fact Patel (2010) stated that cash management is necessary for every business since it contributes to increasing profitability, future planning and longevity. Cash management is a financial discipline that adopts

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  • WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF

    WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF SELECTED QUOTED FOOD AND BEVERAGES MANUFACTURING FIRMS IN NIGERIA Osundina Jacob Ademola, ACA, Ph.D Accounting Department, Babcock University, Ilishan Remo, Ogun State, Nigeria P.M.B. 21244, Ikeja, Lagos +234-8035454446, ABSTRACT The main objective of this research was to investigate the relationship between working capital management

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  • Working capital, cash holding, and profitability of

    01/07/2015 · Likewise, liquidity management (cash level management) is important for restaurant firms in good times and even more so in uncertain economic conditions. Insufficient current assets may impede a firm's ability to maintain efficient operations and further increase its risk of bankruptcy Dunn and Cheatham, 1993). However, excessive liquidity can also be detrimental to a firm's profitability

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  • TRENDS IN LIQUIDITY MANAGEMENT AND THEIR IMPACT ON

    profitability and liquidity, as measured by current ratio and cash gap (cash conversion cycle) on a sample of joint stock companies in Saudi Arabia. The study found significant negative relationship between the firm's profitability and its liquidity level, as measured by the current ratio. Singh and Pandey (2008) suggested that, for the

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  • The relationship between liquidity and profitability

    management decisions the attributions to obtain the necessary resources and apply them in order to achieve the profit maximization or the maximum value for shareholders. The management of working capital is the part of the financial management responsible for the control of the gross current assets, which includes the firm's cash, account

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  • IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY

    management, as measured through the cash conversion cycle, and corporate profitability in the developing country of Pakistan. This study enriches the finance literature on the relationship between working capital management and profitability. In this study an effort has been made to analyze the empirical study of cement industry of

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  • Cash Conversion Cycle and Firm's Profitability An

    management and particularly the cash management. Furthermore, the cash conversion cycle, actually, is the most significant part in working capital management. On the other side, working capital management is essential dynamic for a firm. There are direct and indirect effects on a firm's profitability and risk, and consequently its value. It measures the time it takes to convert cash into

    Get Price
  • Corporate returns and cash conversion cycles SpringerLink

    This study examines the relationship between profitability measures and management of ongoing liquidity needs for a large cross-section of firms over a twenty-year period. Long-run equilibrium relationships between the cash conversion cycle, a measure of ongoing liquidity management, and alternative measures of profitability are tested using both nonparametric and multiple regression

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  • Cash Management and Corporate Profitability A study of

    Cash Management and Corporate Profitability A study of selected listed Manufacturing Firms in Nigeria. Cash has always being disregarded in financial decision making since it involves investment and financing in short term period. However, it is an important component in firm financial management

    Get Price
  • Working capital, cash holding, and profitability of

    Abstract Efficient working capital management is becoming important for restaurant firms coping with weak financial conditions and increased economic uncertainty. This study investigates the impact of restaurant firms' working capital on their profitability. We further examine the effects of firms' cash levels on the relationship between working capital and profitability.

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  • Financial Management Practices and Performance of SMEs in

    credit management, cash management, inventory management and asset management in their operations. Keywords Financial management practices, asset management, Ordinary least square, Firm's age, SMEs, Ghana. Financial Management Practices and Performance of SMEs in Ghana The Moderating Role of Firm Age 9 Open Journal of Economics and CommerceV1 14 2018 over the world. Selection

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  • Treasury Cash Management Ensuring Profitability while

    Treasury Cash Management Ensuring Profitability while Effectively Managing Your Risks (2021-06-21) This 1 1⁄2 hour treasury cash management training will walk attendees through popular treasury services, their benefits, revenue opportunities, the risks associated with each product and service and how to effectively manage the risks.

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  • THE IMPACT OF CASH MANAGEMENT ON THE

    The study in this regard wishes to examine the impact of cash management on the profitability of manufacturing companies using Dangote cement as the case study. 1.2 HISTORICAL BACKGROUND OF DANGOTE CEMENT. Established in May 1981 as a trading business with an initial focus on cement, the Group diversified over time into a conglomerate trading cement, sugar, , salt and fish. By the early

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  • Profitability vs Cash Flow FINPACK

    07/10/2020 · Helping business customers understand profitability versus cash flow is key to business management. Profitability does not necessarily equal positive cash flow. Alternatively, positive cash flow does not necessarily mean the business is profitable. To be financially successful over time, profitability should provide enough funds for the investing and financing needs of the business.

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  • THE IMPACT OF CASH MANAGEMENT ON THE

    Despite the fact that cash management in manufacturing firms involves managing money to maximise cash availability and profitability which involves synchronization of business cash receipts perfectly with cash payments bearing abroad aspect of maximising profits, manufacturing firms have failed to attain the desired levels of profitability (Van Horne, 2006) Cash management represents an

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  • THE IMPACT OF CASH MANAGEMENT ON THE

    The study in this regard wishes to examine the impact of cash management on the profitability of manufacturing companies using Dangote cement as the case study. 1.2 HISTORICAL BACKGROUND OF DANGOTE CEMENT. Established in May 1981 as a trading business with an initial focus on cement, the Group diversified over time into a conglomerate trading cement, sugar, , salt and fish. By the early

    Get Price
  • Corporate returns and cash conversion cycles SpringerLink

    This study examines the relationship between profitability measures and management of ongoing liquidity needs for a large cross-section of firms over a twenty-year period. Long-run equilibrium relationships between the cash conversion cycle, a measure of ongoing liquidity management, and alternative measures of profitability are tested using both nonparametric and multiple regression

    Get Price