Analyzing the Impact of Working Capital Management on Profitability: A Study on Dse Listed Cement Companies in Bangladesh

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Saptarshi Dhar
Saptarshi Dhar
1 Jahangirnagar University

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The study is an analysis on the impact of working capital management on profitability of cement companies in Bangladesh. The study comprises all the 7 cement companies that are listed on the Dhaka Stock Exchange (DSE). Gross Operating Profit has been used as proxy for profitability and cash conversion cycle and its components (accounts receivable period, inventory conversion period and payables deferral period) have been used as proxy for working capital. The study used panel data regression technique and data were collected from secondary sources for the period 2007-2015. Results show that cash conversion cycle, accounts receivable period and inventory conversion period have significant negative impact on profitability whereas payables deferral period has significant positive impact on profitability for the sampled companies.

36 Cites in Articles

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Saptarshi Dhar. 2018. \u201cAnalyzing the Impact of Working Capital Management on Profitability: A Study on Dse Listed Cement Companies in Bangladesh\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 18 (GJMBR Volume 18 Issue C4): .

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GJMBR Volume 18 Issue C4
Pg. 19- 24
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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June 26, 2018

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The study is an analysis on the impact of working capital management on profitability of cement companies in Bangladesh. The study comprises all the 7 cement companies that are listed on the Dhaka Stock Exchange (DSE). Gross Operating Profit has been used as proxy for profitability and cash conversion cycle and its components (accounts receivable period, inventory conversion period and payables deferral period) have been used as proxy for working capital. The study used panel data regression technique and data were collected from secondary sources for the period 2007-2015. Results show that cash conversion cycle, accounts receivable period and inventory conversion period have significant negative impact on profitability whereas payables deferral period has significant positive impact on profitability for the sampled companies.

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Analyzing the Impact of Working Capital Management on Profitability: A Study on Dse Listed Cement Companies in Bangladesh

Saptarshi Dhar
Saptarshi Dhar Jahangirnagar University

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