• ISSN(P) : 2708-2474
  • ISSN(E) : 2708-2482
  • ISSN(L) : 2708-2474

Article

 

The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index

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Abstract

The intention is to investigate the trends in WC management and the association of managing working capital with the firm’s performance. Return of total Assets is the proxy to measure the firm’s performance and its association with the variables representing the WCM is studied for a sample of 54 firms for the period 2004-2010.The variables like invdays and ardays show a considerable effect on the firm’s earning capability. The study proved a direct and considerable affiliation between the firm liquid position with its performance. Profitability and the firm’s size have a prominent positive association. The association between the debts ratio and the firm’s performance is inverse but this association is insignificant. Similarly, the results show insignificant relation between the profitability and the cash gap and account payable in days. The results show that there is an imperious role of better managing firm working capital with the firm’s performance.

Authors

1-Yousaf Khan
National University of Modern Languages, Islamabad, Pakistan

2-Shah Hussain
MS Scholor, National University of Modern Languages, Islamabad, Pakistan.

3-Muhammad Israr
MS Scholor, National University of Modern Languages, Islamabad, Pakistan.

Keywords

Working Capital Management, Account Payable, Cash-Conversion-Cycle, Account Receivable, Inventory, Regression Analysis

DOI Number

10.31703/gmsr.2021(VI-III).04

DOI Link

http://dx.doi.org/10.31703/gmsr.2021(VI-III).04

Page Nos

54 – 70

Volume & Issue

VI - III


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Published: Sep 2021

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