The Influence of Working Capital Management on the Food Industry Enterprises Profitability

Contemporary Economics, Volume 5, Issue 4, pp. 68-81, 2011

14 Pages Posted: 30 Oct 2012

See all articles by Anna Bieniasz

Anna Bieniasz

affiliation not provided to SSRN

Zbigniew Gołaś

Poznan University of Life Sciences, Poland

Date Written: December 27, 2011

Abstract

The article presents the results of working capital management efficiency in the food industry in Poland and selected countries of the Eurozone. The research was conducted on the basis of the unpublished data by the Polish Central Statistical Office in the trade structure and dimension of food industry enterprises in Poland in the period of 2005-2009, and comparatively, in respect of the food sector in selected Eurozone countries. The working capital management efficiency was assessed by means of the inventory, accounts receivables, current liabilities turnover cycles, cash conversion cycle, and in respect of the obtained rates of return from non-financial assets. The research proved that in the food industry sectors with the shortest working capital cycles, relatively higher rates of profitability were obtained. A favorable influence of working capital cycles reduction of the profitability was also verified by means of a multiple regression analysis.

Keywords: working capital, rate of return, food industry

JEL Classification: F30, G30, G31

Suggested Citation

Bieniasz, Anna and Gołaś, Zbigniew, The Influence of Working Capital Management on the Food Industry Enterprises Profitability (December 27, 2011). Contemporary Economics, Volume 5, Issue 4, pp. 68-81, 2011. Available at SSRN: https://ssrn.com/abstract=2168215

Anna Bieniasz (Contact Author)

affiliation not provided to SSRN ( email )

Zbigniew Gołaś

Poznan University of Life Sciences, Poland ( email )

Wojska Polskiego 28
Warsaw, 60-995
Poland

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