International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12
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 Volume 7, Issue 11 (November 2020), Pages: 67-73

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 Original Research Paper

 Title: The impact of working capital management on the firm's profitability

 Author(s): Khaled Adnan Oweis *

 Affiliation(s):

 Accounting Department, Business Administration College, Northern Border University, Arar, Saudi Arabia

  Full Text - PDF          XML

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0001-5773-1494

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2020.11.007

 Abstract:

Profitability refers to the state of financial gain production and is the primary goal of all business enterprises as, without it, a business will not last through the long-run. In relation to this, one of the top responsibilities of an entrepreneur is to maintain increasing profitability, and as such, they are in constant look-out to change business for the betterment of its profitability. In the same line of argument, efficient working capital management is believed to lead to enhanced firms' value creation. Therefore, this study aimed to determine the effects of working capital management on the profitability of Saudi organizations, particularly the cement sector. This study’s significance lies in the clarification of the capital management’s role in organizational success and their contribution to increasing liquidity and profitability while maintaining financial appropriateness, particularly in the face of limited external financial assistance. The study aimed to determine the obstacles and issues that Saudi cement companies face in their working capital application and to determine the effect of its variables, namely liquidity management, inventory management, working capital turnover, and receivable conversion period on the Saudi cement manufacturing companies performance. The secondary was gathered from 13 Saudi cement companies for the years from 2015 to 2020. Data collection was analyzed, and the results were presented along with recommendations for future studies. 

 © 2020 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Working capital management, Saudi cement sector, Receivable conversion period, Inventory management, Working capital turnover

 Article History: Received 26 March 2020, Received in revised form 28 June 2020, Accepted 2 July 2020

 Acknowledgment:

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The authors declare that they have no conflict of interest.

 Citation:

 Oweis KA (2020). The impact of working capital management on the firm's profitability. International Journal of Advanced and Applied Sciences, 7(11): 67-73

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