engleski

Working capital management – Efficient tool for success of milk producers: true or false?

Working capital management can be considered as vital issue in financial decision-making processes in company. Consequently, it directly affects company’s success in the way of its profitability. Empirical evidence is provided on a sample of Croatian and Slovenian companies in the dairy processing industry. Univariate and multivariate analyses are used to test hypotheses about impact of working capital management components and cash conversion cycle on company’s profitability. Furthermore, differences in working capital management policies in condition of crisis and before crisis are examined. Our findings show that none of working capital management components significant affect profitability, measured by return on assets, while statistically significant relation exists between cash conversion cycle as working capital management comprehensive measure and profitability.

Working capital management, Dairy industry, Milk production, Profitability.

nije evidentirano