The Effect of Inventory Turnover, Cash Turnover, and Receivable Turnover on Profitability at Telecommunication Companies during the Covid-19 Pandemic

This study aimed at analyzing three different turnovers of current asset elements: the inventory turnover, the cash turnover, and the receivable turnover on profitability. Data is taken in the form of financial statements from the public companies of the telecommunication sector during four quarters of 2020. The panel data is processed from 9 companies or 36 observations using the Eview9 application and produced the fixed effect model as the best regression. The results indicate that the cash turnover has a significantly positive effect on profitability, whereas the inventory turnover and the receivable turnover have not significantly any effect on profitability. Therefore, the study concluded that the cash turnover was the one of current assets turnover that effected on the profitability of the public company telecommunication sector in Indonesia. It implied to the public companies of telecommunication sectors to choose the appropriate turnover model to achieve the maximum profitability during the Covid-19 pandemic.

ОБЛІКОВО-АНАЛІТИЧНИЙ ІНСТРУМЕНТАРІЙ УПРАВЛІННЯ ОБОРОТНИМ КАПІТАЛОМ ПІДПРИЄМСТВ В УМОВАХ ГЛОБАЛЬНИХ ВИКЛИКІВ

Global challenges cause many social and economic transformations in the economic entities activities, especially related to current assets, including disruptions in the inventories supply, increasing receivables due to breach of payment discipline of counterparties due to reduced sales of their own products during quarantine measures, reduced consumer solvency, devaluation of fiat money, etc., which makes it impossible to repay the debt on time, and the growth of receivables leads to the inability to repay their own accounts payable. The aim of the research is improvement the methodology and organization of accounting, analysis and audit of enterprise current assets in the face of global challenges. The subject of the research is the process of current assets formation and usage of PJSC "FED". The methods of the research: observation, comparison, analysis, generalization and formalization, rationing, forecasting. The hypothesis of the research: improving the process of accounting, analysis and internal audit of current assets will increase the efficiency of their formation and usage. The statement of basic materials. For increasing the efficiency of the process of current assets formation and usage in the context of global challenges, a conceptual approach to their accounting and analysis has been developed. The forecasting of current assets value of PJSC "FED" for the next two years was carried out with the help of trend analysis, as a result of which it was determined that the value of current assets will increase. For optimization the inventories formation and usage, the ABC-analysis has been implemented, which makes possible to accurately calculate the required volumes of purchases by different product groups; to exclude from the nomenclature illiquid positions, which makes possible to release cash frozen in these goods, reduce warehousing costs, increase inventory turnover; ensure sales growth. To improve the system of accounting for receivables at PJSC "FED" it is proposed to open six sub-accounts to account 38 "Provision for doubtful debts", as well as to improve analytical accounting by introducing groups of debtors in terms of non-repayment of receivables. Differentiation of ways to increase the efficiency of current assets formation and usage depending on the stage of the operating cycle is proposed. Also it is proposed to conduct current assets internal audit, which will verify the security of current assets, compliance with the rules and requirements of their accounting, documentation, reliability of information. The originality and practical significance of the research: originality lies in the development of methodological principles of production enterprise current assets accounting and analysis, identifying the lack of sources of own working capital. The conclusions and proposals obtained as a research results can be used in the practice of the production enterprise of PJSC "FED" to improve the efficiency of current assets accounting, analysis and audit. Conclusions. The proposed measures will help to improve the efficiency of current assets formation and usage, in particular, to reduce accounts receivable and improve the inventories formation quality

DOES WORKING CAPITAL MANAGEMENT AFFECT THE PROFITABILITY OF CONSUMER GOODS MANUFACTURING FIRMS IN NIGERIA?

The study examined the effect of working capital management on profitability of consumer goods manufacturing firms in Nigeria between the periods 2009 to 2018. The study adopted ex-post-facto design to generate data from the audited financial statements of the selected companies. The population of the study comprised 24 listed consumer goods manufacturing companies, out of which 10 were purposively selected based on the availability of data. The surrogates for independent variables were Account Payable Period (APP), Account Receivable Period (ARP), Inventory Turnover Period (INVTP), Cash Conversion Cycle (CCC) and Sales Growth (SG) as a control variable while the proxy for profitability was Return on Asset (ROA). Descriptive and inferential statistics coupled with multiple regressions were adopted to analyze the data. The Random Effects Generalized Least Square showed that ARP, INVTP, CCC had a negative and significant relationship with ROA while APP, SG had a positive and insignificant relationship with ROA. The study concluded that timely collection of debts and shorter inventory turnover period with cash conversion cycle enhance profitability of consumer goods manufacturing companies. Hence, the study suggested that the management of the companies should implement efficient working capital management for improved profitability.

Inventory Management and Financial Performance of Nepalese Public Enterprises

The objective of the research paper is to analyze the inventory management and the profitability of PE in Nepal. The descriptive and analytical research designs have been adopted in the study. The quantitative research approach has been used in the study. The population of the study is 37 public enterprises in Nepal. NFC, HPPC, and DDC are the samples taken based on purposive sampling method. The descriptive analysis, correlation analysis, and multiple regression analysis tools have been used in the study with seven years data from the years 2011AD to 2017AD. The variables used are CR, QR, CCC, ITR, ROA, ROE, OM, firm growth, and size of the firm. The results provide the negative and insignificant relationship between inventory turnover and liquidity ratios with profitability. The results concluded the negative and insignificant relationship with current assets, quick assets with profitability. CCC is found as insignificant positive relationship with profitability. Thus, the study concluded that PE in Nepal should manage their working capital efficiently to achieve the optimal profitability even though the study found no significant relationship of inventory management on the profitability of PEs in Nepal. The study highly recommend to not to ignore the inventory management by Nepalese public enterprises.

Firm Profitability And The Administration Of Working Capital: Delving Into A Case Of The Cement Sector Of Pakistan

This study endeavors to establish an association between the administration of working capital and firm returns in Pakistan’s cement sector. Ten companies listed in the cement industry of KSE 100 Index were taken from Pakistan Stock Exchange randomly. Financial data in secondary form was collected from the financial reports of cement firms of the country. The study employed return on assets as an explained variable and inventory turnover period in days, collection period in days, payment period, cash conversion cycle, sales in log, and liquidity ratios as explanatory variables while controlling for the influence offirm’s size and firm’s growth in terms of sales. It was found that the current ratio, log of sales, cash conversion cycle and inventory conversion period positively influenced the return of companies whereas size of the firm, collection period of receivables, payment period to creditors and the debt ratio of firms had a negative influence on it.

Efisiensi Kinerja Rantai Pasok Beras Organik “Beras Raos”

Dewasa ini masyarakat mulai sadar akan pentingnya pangan yang sehat, seperti beras organik. Hanya saja secara ekonomi sektor pertanian beras masih menghadapi berbagai persoalan, salah satunya harga jual di tingkat petani yang masih tergolong rendah, hal tersebut dikarenakan rantai pasok yang masih panjang juga sistem rantai pasok yang kurang optimal. Tujuan dari penelitian ini adalah menganalisis efisiensi kinerja rantai pasok beras organik “Beras Raos”. Metode penelitian yang digunakan adalah metode survei, dengan responden petani, kelompok tani Sari Alam, dan retailer yang ditentukan menggunakan purposive sampling dan snowball sampling. Analisis data menggunakan analisis deskriptif dengan pendekatan kuantitatif, dan aspek-aspek analisis efisiensi pemasaran (margin pemasaran dan farmer’s share) dan efisiensi pengelolaan asset (inventory turnover, inventory days of supply, dan cash to cash cycle time). Hasil analisis efisiensi kinerja rantai pasok tersebut menunjukkan belum efisien sepenuhnya, seperti dalam hal: nilai farmer’s share yang masih < 70%, yakni hanya mencapai 41,8% dan nilai cash to cash cycle time yang mencapai 37 hari untuk mengubah persediaan beras organik menjadi uang, dimana rentang waktu 37 hari tersebut masih tergolong cukup lama.

Pengaruh Perputaran Modal Kerja dan Perputaran Persediaan Terhadap Profitabilitas Perusahaan Properti dan Real Estate yang Terdaftar di Bursa Efek Indonesia

This study aims to test whether working capital turnover has a negative effect on profitability and inventory turnover has a positive effect on the profitability of property and real estate sector companies listed on the IDX for the 2014-2018 period. This study has one dependent variable, namely profitability and five independent variables, namely working capital turnover, inventory turnover, asset turnover, short-term bank loans, liquidity and mark up. The sampling method used the cross-sectional technique, with a sample of 210 companies in the 5 years of the study. The results of the study found that working capital turnover has a negative effect and inventory turnover has a positive effect, asset turnover has a positive effect, short-term bank loans have a negative effect, while liquidity and mark-up have a negative effect on company profitability. This shows that the lower the working capital turnover of a company, the lower the company's profitability, the smaller the inventory turnover rate, the higher the company's profitability, the higher the asset turnover, the better the company's ability to generate profits, the higher the company's short-term debt. the lower the company's profitability, the higher the liquidity and mark-up, the more difficult the company's ability to generate high profits.

A Comparative Study on Working Capital Management of Tata Motors Limited and Maruti Suzuki India Limited

The automobile industry in India is one of the speedily growing industry. Working Capital Management is important in this industry due to increasing demand and huge investment in this sector requires proper management. Working Capital Management perform a vital role in the success and failure of a business due to its effect on the performance and liquidity. Thereby this study has been undertaken to Comparative analyse working capital management of Tata Motors Limited and Maruti Suzuki India Limited for the period of seven years from 2013-14 to 2019-20. In this study three objectives are set for research. The first one was to assess the impact of working capital on sales, second was to assess the impact of working capital on profitability and third was to evaluate the working capital performance of the companies under study through the use of various financial ratios. The study reflects that the efficiency of working capital management of the companies is influenced by the Liquidity Ratios, Debtor Turnover Ratio, Inventory Turnover Ratio and profitability Ratio.

The Effect of Cash Turnover, Account Receivable Turnover and Inventory Turnover on ROA in Mining and Quarrying Sector Companies Listed in IDX From 2017-2019

The mining sector is a manufacturing company sector whose activities consist of extracting, processing and exploiting and selling coal, minerals, metals and natural gas. This research was conducted with the aim to determine whether ROA is affected by cash turnover, accounts receivable turnover and inventory turnover using documentation as a data collection and a method of multiple linear regression analysis through SPSS data processing. The population used is the mining and quarrying sector companies listed on Indonesia Stock Exchange (IDX) from 2017-2019 totaling 43 companies. The purposive sampling method was used in determining the sample which resulted in 33 samples. The research shows that cash turnover, accounts receivable turnover and inventory turnover have no effect on ROA because this is due to a decrease in the amount of production, cash flow constraints due to low turnover of accounts receivable and low sales so that inventory turnover is slow and inventory costs are higher.

Impact of Working Capital Management on Profitability: A Case Study of Trading Companies

The success of any business depends on its profitability, liquidity, and solvency. Liquidity plays an important role in the successful running of a business. Many prior studies have been conducted to measure the relationship between working capital and profitability. The results showed that the high investment in inventories and receivables is associated with lower financial performance. They found a negative relationship between Return on Assets and Inventory turnover and Cash conversion cycle the present study is designed to know the direct impact of working capital on profitability by choosing the days of collection, days of payment, days inventory converts to sales and finally the cash conversion cycle. This study examines the association between the profitability and working capital using the data of 15 US trading companies for the period of 2015 to 2019. The key points in this study are firstly there exists a negative relationship between the profitability and the average collection period, the lower the average collection period higher will be the profitability, indicating that a decrease in the number of days a firm receives payment from sales affects the profitability of the firm positively. Secondly there is a highly significant positive relationship between average payment period and profitability. This implies that the longer a firm makes the payment to its creditors, the more profitable it is. Thirdly the cash conversion cycle decreases it will lead to an increase in profitability of the firm, and managers can create a positive value for the shareholders which indicates that it has been maintained. The regression analysis showed the value for the R-squared in the model is 0.584, i.e., 58.4% of the variation in the dependent variable Net Profitability is explained by the independent variables.