Κατεύθυνση Λογιστική
Library of the Faculty of Economics and of the Faculty of Business Administration

2019-10-29

2019

Kalovrenti Theodora-Nikoletta

Τούντας Κανέλλος, Επισκέπτης Καθηγητής, Τμήμα Οικονομικών Επιστημών, ΕΚΠΑ

Επίδραση του Κεφαλαίου Κίνησης στην Κερδοφορία των Επιχειρήσεων: Η περίπτωση των εισηγμένων στο Χρηματιστήριο του Παρισιού Γαλλικών Εταιρειών

Greek

Impact of working capital on business profitability: The case of listed companies in the Paris stock exchange

Working capital has been the subject of study by many economists for decades. Many scientific articles have been produced to highlight the importance of working capital in the existence of businesses as it is one of the key pillars in achieving financial equilibrium. A major issue is the rationalization of working capital, which is related with the liquidity of businesses and effectively ensures their proper functioning. Working capital management essentially means managing the stocks, cash, accounts payable and business accounts receivable. This study aims to examine the relationship between working capital and profitability of a sample of companies listed on the Paris Stock Exchange for the period 2012 to 2017. For the purpose of this research, data were drawn from the financial statements of 80 French companies and the relationship between the cash conversion cycle and their profitability was examined. The cash conversion cycle was used as a measure of efficiency in working capital management. Profitability was measured on the basis of sales and business operating income. The survey results showed a tilting of the negative relationship between the cash conversion cycle and profitability, which means that as the cash conversion cycle increases, business profitability decreases.

Social, Political and Economic sciences

working capital, cash conversion cycle, liquidity, profitability

No

0

Yes

55

71

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https://pergamos.lib.uoa.gr/uoa/dl/object/2884145