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1
Aliev, Gadzhimurad R. "MODERN DEMAND OF MANAGEMENT OF RECEIVABLES AND PAYABLES AT THE ENTERPRISE." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 2/3, no. 122 (2022): 26–32. http://dx.doi.org/10.36871/ek.up.p.r.2022.02.03.004.
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Accounts receivable and accounts payable management is an effective tool for increasing the competitiveness of enterprises in today’s market conditions. Since the deferred payment, a commercial loan allows you to increase the number of customers, revenues and profits, while accounts payable attract additional resources to the company. Sometimes there is a situation of formation of overdue receivables and payables, and sometimes their share of the total amount of sales of goods and services is quite high. Therefore, with inefficient management of receivables and payables, poor-quality accounting and analysis, there is a risk of loss of solvency, profit, and sometimes bankruptcy of the enterprise. Currently, the problem of optimizing receivables and payables and ensuring balance is becoming a key issue for almost every enterprise.
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BONDARENKO, Olha, and Iryna MASIUK. "Ways to improve minimization of receivables and payments and management by them." Economics. Finances. Law, no. 4 (April 17, 2020): 26–29. http://dx.doi.org/10.37634/efp.2020.4.5.
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Introduction. To date, every entity has faced accounts receivable and payable. There are times when debt becomes overdue. An entity cannot repay its debt because debtors do not repay their debt. In fact, receivables and payables are closely linked, which in turn has a negative effect on the balance sheet and financial performance of any counterparty. This article discusses cases of arrears and ways of overcoming (reducing) accounts receivable and payables. The purpose of the paper is to study the factors that influence the increase in accounts receivable and payable within the internal and external activities of the enterprise. Results. In today's economic environment, a large number of Ukrainian enterprises went bankrupt and liquidated because they were unable to pay their debt to creditors. Also this situation arose due to a certain amount of cash, which was in circulation and in time did not enter the current account of the enterprise for payment of accounts payable. On the balance sheet receivables and payables account for a large percentage of both their and others' debt. We'll look at how and under what conditions debt can be reduced. Conclusion. It is advisable to balance receivables and payables in order to control the debt at the enterprise. The constant cash flow should not stop. The debt of the debtors goes to pay off the debt to the creditors. The optimal ratio is when the accounts payable exceeds accounts receivable by 10-20%.
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Shashkova, Tatyana N., та Larisa Zh Khabibullina. "ДЕБИТОРСКАЯ И КРЕДИТОРСКАЯ ЗАДОЛЖЕННОСТЬ: СОВРЕМЕННОЕ СОСТОЯНИЕ, ПРОБЛЕМЫ И МЕТОДЫ УПРАВЛЕНИЯ". Vestnik BIST (Bashkir Institute of Social Technologies), № 2(59) (29 червня 2023): 111–17. http://dx.doi.org/10.47598/2078-9025-2023-2-59-111-117.
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The subject of the study is accounts receivable and accounts payable. The purpose of the study is to consider the state of receivables and payables in modern economic conditions, problems and methods of its management. The objectives of the study are to study the dynamics of the debt of economic entities, methods and methods of managing it, identifying problems of non-repayment in a timely manner and in full. The novelty of the study: the theoretical foundations of the management of receivables and payables, the problems of its occurrence are disclosed, and the dynamics and structure of debt are reflected on the basis of statistical information. Conclusions: the excess of accounts payable over accounts receivable, formed by enterprises operating in the country, was revealed; the problems of debt management and the need to improve methods of monitoring the fulfillment of obligations by counterparties are disclosed.
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Liudmyla, Jaremenko. "FORMATION OF ACCOUNTING INFORMATION OF ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE." University Economic Bulletin 36/1 (April 17, 2018): 147–54. https://doi.org/10.5281/zenodo.1219770.
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The subject of the study is theoretical, methodological and practical aspects of accounting for accounts receivable and payables. The purpose of the study is to determine the peculiarities of management of accounts receivable and payables at Ukrainian enterprises. Methodology of work. The work is performed on the results of research of modern domestic and foreign views on the peculiarities of management of accounts receivable and payables. Results of work In the article the essence of receivables and accounts payable is considered. The features of the management of accounts receivable and payables at domestic enterprises are described. The accounting of accounts receivable and accounts payable is described. The basic methods of management of accounts receivable and accounts payable are determined. The field of application of results. Organization and conducting of scientific researches on peculiarities of management of accounts receivable and payables at domestic enterprises taking into account international standards. Conclusions. Proper accounting of accounts receivable and payables at the enterprise of any form of ownership is essential, thus contributing to the ordering of information, transparency, accuracy and reliability of data on settlement operations for debt obligations (with debtors and creditors). The stability of the financial position of the company is the key to its further economic and financial growth.
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Sablina, N., and O. Lytovchenko. "MODELING THE PROCESS OF DEBT MANAGEMENT IN THE SYSTEM OF ADMINISTRATION OF FINANCIAL ACTIVITIES OF THE ENTERPRISE." Series: Economic science 2, no. 169 (2022): 49–56. http://dx.doi.org/10.33042/2522-1809-2022-2-169-49-56.
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The article considers topical aspects of managing receivables and payables of the enterprise as a prerequisite for improving payment discipline. The essence of debt management in the system of administration of financial activity of the enterprise, the economic nature of receivables and payables, the advantages and disadvantages of the formation of receivables and payables of the enterprise are studied. Part of the receivables and payables in the financial and economic activities of the enterprise is inevitable and must be within acceptable limits, respectively, not to cause financial risks that may cause bankruptcy. The article emphasizes the need for rational and sound management of receivables and payables, as it has a direct impact on the effective functioning and development of the enterprise, the level of its financial results and image among partner companies. The reasons for the formation and impact on the activities of enterprises receivables and payables are outlined. Factors influencing the amount of accounts payable are considered. The main tasks of receivables and payables management of the enterprise are researched and formulated. The system of measures for management of receivables and payables of the enterprise is investigated and generalized. the company needs to form a certain model of business process management. In order to increase the efficiency of receivables and payables management at enterprises, a structural and functional model of the company's receivables and payables management process has been developed. The conceptual directions of improving the management of receivables and payables are given and the need to strengthen the practical component of the proposed recommendations is emphasized.
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MULYK, Tetiana, Olena TOMCHUK, and Lidiia FEDORYSHYNA. "ANALYTICAL PROVISION OF THE ENTERPRISE'S DEBT IN THE CONTEXT OF CRISIS MANAGEMENT." "EСONOMY. FINANСES. MANAGEMENT: Topical issues of science and practical activity", no. 1 (41) (January 2019): 146–60. http://dx.doi.org/10.37128/2411-4413-2019-1-12.
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The system of analytical support of the enterprise in conditions of crisis management is investigated. The approaches to understanding the essence of crisis management, its purpose, role and the basic requirements to the formation of the system of crisis management are specified. It is established that the crisis management of the enterprise is a complex system that is different in its strategic nature and aims at eliminating of possible and existing problems in its activities by developing and implementing a special program using the full potential of modern management. It is established that the crisis management system should provide an appropriate approach to the enterprise's debt in order to effectively manage it, to ensure optimum balance between receivables and accounts payable, to prevent the occurrence of overdue debts, to systematically monitor the calculations, and so on. The analysis of receivables and accounts payables by branches of Ukraine is carried out and the significant excess of receivables is noted. It is indicated that the management of the enterprise will be interested in information on: the amount, dynamics, composition and structure of its indebtedness; quality of debt; the reasons that caused the occurrence and existence of debt; the frequency of occurrence and repayment of debts; influence of debt on the financial condition of the enterprise; the expediency of investing in an enterprise's debt, etc. It is established that the purpose of analysis of receivables and accounts payable is to identify the amount of justified and unreasonable debt; changes for the analyzed period, the reality of receivable and amounts payables, reasons and the prescription of accounts receivable. In this regard, the analysis of receivables and accounts payables is an important part of the financial analysis at the enterprise and allows you to identify not only the indicators of current and prospective solvency of the enterprise, but also factors influencing their dynamics, as well as assess quantitative and qualitative tendencies in the financial state of enterprises in the future. It is determined that in the process of organization of debt analysis it is necessary to separately evaluate and study the availability, composition and structure of the company's debt, its frequency, quality and causes, including overdue. To study the composition and structure of the debt, its dynamics it is appropriate to make special analytical tables, graphs, drawings. In the course of the analysis it is also appropriate to compare the amounts of receivable and payables. According to the results of this comparison, the following factors can be identified: increase or decrease of receivables; increase or decrease in payables. It is stated that the management of receivable and accounts payables at the enterprise is the process of development and implementation of managerial decisions regarding the consistency of their size and speed of the movement in time, providing the necessary profit and optimal amount of available funds. The main components of the enterprise debt management system are presented in the article.
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BONDARENKO, Olha, and Iryna MASIUK. "Audit methodology. Formation and write-off of receivables and payables." Economics. Finances. Law, no. 7 (July 30, 2020): 10–13. http://dx.doi.org/10.37634/efp.2020.7.2.
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Introduction. The share of receivables and payables in the structure of the balance sheet has a high percentage, which certainly affects the production process as a whole. Every receivable is someone's accounts payable and vice versa. Each company faced non-payment of debts in any direction. In this article, we will consider the control over settlements with counterparties and the procedure for writing off and forming bad receivables and payables. The purpose of the paper is to study the audit process at the enterprise in the section of receivables and payables. Identify the processes of writing off bad debts. Results. The audit of accounts payable and receivable is relevant in connection with the introduction of the International Accounting Standards in the management of the enterprise, the constant change in the legal framework of Ukraine. Settlements with debtors and creditors for goods and services have a significant impact on the functional activities of the enterprise, so when the audit firm checks all the nuances of accounting in this area, the main factor of fair conclusions is the provision of reliable information. The main source of information is financial statements, where receivables have a significant share in the assets of the balance sheet, and accounts payable in the liabilities of the balance sheet. Conclusion. Debt write-off is an important component in settlements with counterparties. More often than not, we are faced with bad debts. For the correctness of the display of information and write-off of receivables, the company creates a reserve of doubtful debts, which is reflected in account 38 "Reserve of doubtful debts". To write off accounts payable, the company must have important evidence, documents that are approved in accordance with the law.
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Mihaila, Svetlana, Violeta Codrean, and Nicolai Jieri. "Use of Trade Receivables and Payables Analysis in the Decision-Making Process." Economica, no. 4(126) (December 2023): 32–43. http://dx.doi.org/10.53486/econ.2023.126.032.
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Under the current conditions of the global market economy, effective analysis and management of trade receivables and debts requires strategies aimed at improving results. Monitoring of trade receivables and payables therefore requires increased attention in order to avoid excessive growth in receivables and payables, which would increase the risk of bankruptcy. Thus, the entity’s management must have reliable and relevant information on the economic and financial situation in order to keep the entity’s receivables and payables at an optimal level. This research emphasises the importance of analysing trade receivables and payables and the need for their proper management to improve the entity’s financial position and performance. The methodological approach of the paper involves the use of methodological and statistical-mathematical tools characteristic of the social sciences.
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Verbytska, V., and Ya Nasonenko. "MANAGEMENT OF RECEIVABLES OF THE ENTERPRISE." Series: Economic science 7, no. 167 (2021): 23–27. http://dx.doi.org/10.33042/2522-1809-2021-7-167-23-27.
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The article examined the current state of planning financial obligations and noted the urgency of the problem of the existence of receivables. The urgency of the problem arises due to the presence of a significant share of receivables in the assets of enterprises. The emergence of a problematic issue is the reason for the search for new ways and methods of control over accounts receivable. The organization and methodology for accounting for receivables for goods is shown on the example of TOV "EMSS". We found out that most of the company's income comes from the sale of equipment for the road construction industry, in particular, testing and diagnostic laboratories. The organization of accounting and the main problematic issues of management accounting of receivables in TOV "EMSS" are investigated. The stages of work with contractors are described and the essence of each stage is described in detail. The stage of generating an invoice for payment is considered the moment of the beginning of the receivable to the seller. It has been established that the enterprise is most characterized by current accounts receivable for products, goods and services. At the same time, the company has no bad accounts receivable. The terms of payment for goods and services formed at the enterprise are described. The state and features of management accounting of receivables and their monitoring have been investigated. The main reasons for the origin of accounts receivable in TOV "EMSS" have been clarified. The necessity of work on improving the accounting of receivables and payables has been substantiated. Measures are proposed to reduce the occurrence of accounts receivable and recommendations for improving its information support are developed. The essence of the proposed measures is to automate the information base on accounts payable and receivable of settlement participants; discussion and inclusion in contracts of all obligations between the parties at the stage of concluding the contract; fast fulfillment of obligations for the supply of goods and services; prompt updating of the state of mutual debt, keeping records and reporting of ongoing mutual settlements.
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Adetona-Ibrahim, Toluwalashe, Najighjigh Igba, Mujtaba Liman Abdullahi, David Yakubu, and Faiza Haruna Maitala. "Working Capital Management and Profitability of Consumer Goods Companies in Nigeria." European Journal of Business and Innovation Research 13, no. 1 (2025): 71–86. https://doi.org/10.37745/ejbir.2013/vol13n17186.
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This study investigates the impact of working capital management (WCM) on the profitability of consumer goods companies in Nigeria. Using a quantitative research design, panel data from five selected companies over a five-year period (2019–2023) were analyzed. Key working capital metrics, including Accounts Receivable Period (ARP), Accounts Payable Period (APP), and Inventory Turnover, were examined alongside profitability measured by Return on Assets (ROA). A Fixed Effects regression model was employed to evaluate the relationship between WCM components and profitability, while diagnostic tests ensured the robustness of the results. Findings reveal that ARP and APP have statistically insignificant impacts on ROA, suggesting that receivables and payables management practices may not significantly influence profitability. Similarly, Inventory Turnover showed no robust relationship with profitability, highlighting the complexity of WCM in driving financial performance. Control variables such as firm size and leverage were marginally significant, suggesting their potential role in profitability. The study concludes that while effective WCM practices are essential for operational efficiency, their impact on profitability may depend on firm-specific and industry-specific factors. Recommendations include optimizing inventory management, streamlining receivables and payables cycles, and tailoring WCM strategies to the unique challenges of Nigeria’s consumer goods sector.
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HLUSHKO, Alina, and Yana PYRIH. "OPTIMIZATION OF THE DEBT OF A CRITICAL INFRASTRUCTURE ENTERPRISE IN TERMS OF STRENGTHENING FINANCIAL AND ECONOMIC SECURITY." Herald of Khmelnytskyi National University. Economic sciences 314, no. 1 (2023): 47–54. http://dx.doi.org/10.31891/2307-5740-2023-314-1-6.
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The article is devoted to the issues of strengthening the financial and economic security of critical infrastructure enterprises of Ukraine under martial law. It is proved that the optimality of the volumes of receivables and payables, their balance, and timeliness of repayment are the basis for ensuring liquidity, solvency, financial independence, and safe functioning of the business entity as a whole. The article analyzes the dynamics, structure, ratio and indicators of turnover of accounts receivable and accounts payable of the critical infrastructure object of JSC “POLTAVAOBLENERGO”. The influence of accounts receivable on the liquidity of the enterprise, its profitability and financial stability is determined. The influence of accounts payable on the financial independence of an enterprise and its solvency is substantiated. The indirect impact of accounts payable on the profitability of an enterprise is proved. It is established that the uncertainty and variability of the business environment, especially under martial law, complicates the process of making management decisions. The level of their validity and effectiveness depends on the ability of management to foresee possible scenarios. Therefore, forecasting is rightly recognized as an integral part of determining the directions of debt optimization. On the basis of forecasting, the risk of debt growth of the researched enterprise is identified and directions for optimizing the amount of receivables and payables are proposed, which will not only improve financial stability but also strengthen the financial and economic security of the enterprise as a whole. The priority measures to optimize the accounts payable of JSC “POLTAVAOBLENERGO” are as follows: introduction of a system of control over accounts receivable and accounts payable at the enterprise; introduction of control over the quality of services provided to consumers; monitoring of settlements with creditors for deferred or overdue debts and identifying reasons for non-compliance with the terms of the contract; obtaining state support under martial law.
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Тменова, Е. С., та И. В. Калюгина. "Актуальные вопросы организации бухгалтерского учѐта дебиторской и кредиторской задолженности на примере предприятия ООО "Павловскинвест" Павловского района Воронежской области". ТЕНДЕНЦИИ РАЗВИТИЯ НАУКИ И ОБРАЗОВАНИЯ 70, № 3 (2021): 86–91. http://dx.doi.org/10.18411/lj-02-2021-96.
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This article is devoted to the problems associated with the organization of accounting for payables and receivables. Undoubtedly, the stability of the financial condition of an organization in a modern market economy largely depends on the effectiveness of the management of accounts payable and receivable. The relevance of this topic is determined by the theoretical and practical significance of the problem. In order to increase the financial stability and solvency of the enterprise, the authors offer a list of recommendations for conducting settlements with counterparties.
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Mwaura, Simon Maina, and Dr Tabitha Nasieku. "Effect of Working Capital Management On The Profitability of Women Owned Small And Medium Enterprises In Nyeri Town, Kenya." International Journal of Social Science and Humanities Research (IJSSHR) ISSN 2959-7056 (o); 2959-7048 (p) 1, no. 1 (2023): 370–77. http://dx.doi.org/10.61108/ijsshr.v1i1.35.
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Working Capital management is one crucial element used to analyze the performance of organizations in their daily operations by ensuring that the there is a balance between profitability and liquidity. This research evaluates the effects of working capital management on the profitabilityof Small and Medium Enterprises. Specifically the study looks at the effect of cash, accounts receivables, accounts payables management on the performance of women owned Small and Medium Enterprises in Nyeri Town, Kenya .The target population was 10 Women owned Small and Medium Enterprises registered by the County Government of Nyeri Kenya and had been in business for more than 5 years. Secondary data for a period of 5years between 2018 and 2022 was collected and analyzed using a panel regression analysis model. The study results indicated that all the three variables under observation, that is cash accounts receivable and payables management had a negative and significant effect on profitability of Women Owned Small and Medium Enterprises in Nyeri County, Kenya. The study recommends that the Enterprises should reduce their average collection period in order to improve their profitability. Data collected showed that the average accounts receivables collection period in the period of 2018 to 2022 was 182.4715 days. Thus to boost profitability the study recommends the Women Owned Small and Medium Enterprises should reduce the account receivables collection period by using incentives to encourage the debtors to pay on time.The average accounts payables payment period was 79.9924 days which was quite high.A firm with a long account payment period frustrates the supplier from supplying any more goods or services to the firms.Thus, the accounts payable period needs to be maintained as low as possible and the firms need to pay any debts promptly if possible.
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Ptashchenko, Liana, and Daria Korniienko. "Tools for assessing of business receivables and payables." Економіка і регіон/ Economics and region, no. 2(77) (July 31, 2020): 37–42. https://doi.org/10.26906/eir.2020.2(77).1946.
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The method of assessing the appropriateness of paying deferred payments to buyers in terms of comparisons of costs and revenues, proposed by scientists of Kyiv National University of Trade and Economics Mazaraki A.A. and Lihonenko L.A., is investigated and its toolkit for estimating the value of receivables and payables is used as an example of the enterprise Poltava Oil-Extraction Plant – Kernel Group, PJSC in 2019. The level of expenditure and income of the enterprise is determined taking into account various factors, and the absolute amount of the effect of the receivables and payables is calculated. The valuation of creditor debt as an element of capital is based on the general concept of the value of capital. The capital prices refer to the relative annual cost of servicing debt to suppliers, investors. The value of the commodity payables is determined on the basis of an estimate of the losses from underpayment of the price discounts that would have been available to businesses in making advance payments. The effectiveness of debts is determined and «balance of value» is analyzed. This made it possible to establish that at Poltava Oil-Extraction Plant – Kernel Group, PJSC in 2019 the effect of lending to consumers in receivables exceeds the results obtained from the use of the accounts payable. However, in order to minimize the «cash gap» the enterprise is advised to use factoring and bill payments, which are reasonably effective tools in the management of payables and receivables, giving discounts to buyers.
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YARMAK, Olha, and Kyrylo PROKUDIN. "Management of receivables and liabilities of the enterprise." Economics. Finances. Law, no. 11/2 (November 27, 2020): 28–31. http://dx.doi.org/10.37634/efp.2020.11(2).8.
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Introduction. For economic security and stability of the enterprise is an important topic of research and identification of ways to manage receivables and payables. A significant contribution to solving the problems of theoretical and practical aspects of receivables management of enterprises was made by such domestic scientists as O. Lishchenko, I. Sereda, О. Pustiak, Y. Demchenko, O. Rybalko, M Sychova, N. Sirenko, O. Smirnova et.al. However, the multifaceted nature of the problem requires further research on the theoretical and methodological foundations of ensuring the formation and functioning of an effective management system of receivables of the enterprise. The purpose of the work is in the researching and studying the management system of receivables and payables at the enterprise. Results. However, opinions on the direct organization of debt management of the enterprise are quite different. The model of receivables management, according to O. Lishchenko, I. Sereda, includes five elements. While O. Pustiak and Y. Demchenko believes that the algorithm for managing the company's calculations for goods, works and services includes as many as eight stages. Thus, according to O. Rybalko and M. Sychova, the receivables management algorithm should include seven stages. In turn, the model of accounts payable management according to N. Sirenko and O. Smirnova includes only three elements. However, as we can see from the above information, most authors forget that in the debt management system one of the important stages is their relationship with the basic goals and key performance indicators of enterprises, as well as with the conditions of business. In this case, if the consideration of the basic objectives in one way or another can still be found in the proposed algorithms for debt management of the enterprise, then taking into account the conditions of development of macro- and mesoenvironment of the enterprise is not carried out. Conclusion. Thus, the development of management decisions to optimize the level of receivables and payables should be preceded not only by an analysis of the conditions of existence of the enterprise, but also an assessment of the level of manageability of the debt itself. At the same time, at high and medium levels of management, the company's management should use incentives to reduce the level of debt of the company, while at low and insufficient – mostly “heavy”.
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Bereprebofa, D., M.T. Sinebe, and J.E. Akpotu. "WORKING CAPITAL MANAGEMENT AND FIRMS' FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED NIGERIAN FIRMS." GPH-International Journal of Business Management 06, no. 11 (2023): 01–11. https://doi.org/10.5281/zenodo.10071335.
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<strong>This study investigated the influence of Working Capital Management (WCM) on the financial performance of publicly listed companies in Nigeria. The analysis of secondary data from the period of 2012 to 2021 employed the utilization of cash conversion cycle, Account Receivable Management, and Account Payable Management metrics. The findings of the study indicate that there is statistically significant relationship between the cash conversion cycle and financial performance. The management of cash conversion cycle, accounts receivable and accounts payable showed a statistically significant impact on the financial performance of publicly traded companies in Nigeria. The study therefore suggests that firms should maintain an optimal level of working capital in order to maximize their overall value. Additionally, the effective management of cash flow is deemed to be of utmost importance for organizations while maintaining a balanced working capital management, with particular focus on managing account receivables, payables, and inventory. This is because efficient working capital management is anticipated to have a beneficial influence on the market value of firm.</strong>
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Pugach, A. A., and T. V. Bubnovskaya. "Management of receivables and payables as an element of ensuring the economic security of an enterprise: practical aspects." Vestnik Universiteta 1, no. 12 (2023): 162–70. http://dx.doi.org/10.26425/1816-4277-2022-12-162-170.
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The article is devoted to the problem of the effectiveness of accounts receivable and accounts payable management in an enterprise. The object of the study is the LLC XXX leasing company that specialises in financial leasing of cars, road freight vehicles, specialised equipment and other items. Works on relevant subjects of Russian and foreign authors served as a theoretical basis of the study. The goal of the study is to prepare recommendations aimed at improving settlements with creditors and debtors, avoiding and minimising the number of overdue receivables and payables as well as improving the overall economic security of the enterprise. Based on the analysis and synthesis of the results obtained by the authors in previous studies, a set of recommendations was proposed. Their potential impact on the components of the enterprise’s economic security was assessed, and the results that can be achieved in case accounts receivable and accounts payable are properly managed were presented. The method of combining ABC analysis with accounts receivable aging reports, which gives a full picture of creditors and debtors, was described.
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Ogutu, Duncan Odhiambo. "Working Capital Management Practices and Financial Performance in Kenya." African Journal of Commercial Studies 1, no. 2 (2023): 8–14. http://dx.doi.org/10.59413/ajocs/v1.i2.2.
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Gross working capital and net working capital are the two components that can be used to establish the working capital concept. Between current liabilities and current assets, there is a difference called net working capital. Accounts receivable, cash, and inventory are examples of current assets because they are easily convertible into cash; on the other hand, current liabilities are those that are owed to the company right away, such as accounts payable, bills payable, and other financial instruments. Thispaper appraises the interactions between working capital management in terms of cash, inventories, receivables, and payables management in relation to financial performance. The study also highlights two theories relating to working capital management: the liquidity preference theory and the cash conversion cycle. The study concludes that different working capital components have varying effects on the financial performance of manufacturing enterprises. Some studies reveal a favorable association between the components of working capital, whereas others reveal a detrimental relationship.
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Ogutu, Duncan Odhiambo. "Working Capital Management Practices and Financial Performance in Kenya." African Journal of Commercial Studies 1, no. 2 (2022): 8–14. https://doi.org/10.5281/zenodo.7315951.
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<em>Gross working capital and net working capital are the two components that can be used to establish the working capital concept. Between current liabilities and current assets, there is a difference called net working capital. Accounts receivable, cash, and inventory are examples of current assets because they are easily convertible into cash; on the other hand, current liabilities are those that are owed to the company right away, such as accounts payable, bills payable, and other financial instruments. This paper appraises the interactions between working capital management in terms of cash, inventories, receivables, and payables management in relation to financial performance. The study also highlights two theories relating to working capital management: the liquidity preference theory and the cash conversion cycle. The study concludes that different working capital components have varying effects on the financial performance of manufacturing enterprises. Some studies reveal a favorable association between the components of working capital, whereas others reveal a detrimental relationship.</em>
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Степаненко, О.І. "Економічна природа дебіторської та кредиторської заборгованостей, їх місце в бізнес-процесах підприємства". Сталий розвиток економіки, № 1(52) (7 червня 2025): 224–32. https://doi.org/10.32782/2308-1988/2025-52-31.
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The components of the enterprise's economic assets and the sources of their formation are, respectively, receivables and payables. They play a significant role in the accounting and management system, especially in the business processes of sales and acquisitions. Receivables lead to a temporary withdrawal of working capital and a decrease in the level of its turnover, and payables - temporary attraction of capital. Such an impact is noticeable in conditions of economic crisis, during which the financial discipline of enterprises deteriorates, significant delays in debt repayment arise. The article analyzes dissertations in which the categories "receivables", "payables" were studied. In order to highlight the features that reveal the economic nature of receivables and payables, their interpretation and approaches to understanding their essence are studied. It is substantiated that it is advisable to consider their economic nature in three directions: economic, accounting, legal. The views of scientists on the construction of a classification of debts, their grouping for accounting and management needs are analyzed. Accounting events that arise in counterparties when fulfilling contractual obligations during the purchase and sale of assets are highlighted: for the seller - in the process of sale; for the buyer - in the process of acquisition. The place of receivables in the business process of selling finished products (goods, works, services) is substantiated, the aspects in which its role is manifested are highlighted: 1) financing of working capital; 2) impact on cash flows; 3) formation of credit policy; 4) control over the quality of debt; 5) risks of non-repayment; 6) improvement of relations with customers. It is proved that in the business process of acquisition, a key role is assigned to payables, which allows the enterprise to reduce the attraction of external financing and manage cash flows more flexibly. The stages of the strategy for managing receivables and payables are highlighted. It is substantiated that balanced management will make it possible to optimize the amount of debts, reduce the risks of non-repayment of debts, and improve the quality of control procedures for the status of settlements.
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P., Praveen Kumar, and Monisha R. "Employee's Perception about Materials Procurement and Payables Management." RESEARCH REVIEW International Journal of Multidisciplinary 03, no. 11 (2018): 30–33. https://doi.org/10.5281/zenodo.1479087.
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The endeavour of the manufacturing business is to uphold stability between liquidity and profitability. It contracts with sustaining appropriate management of receivables and payables. The credit worthiness of the customer is determined by the time taken for paying back the cash. The capital cost is employed to meet the requirements for accomplishing the receivables and payables for forfeiting suppliers, employees, etc. The administration cost is deserved for inspecting the credit value of customers. The default cost arises for the reason that customers are incapable of paying the debt resulting in bad debts. This will ensure harmless future in terms of money for the business. This study investigates employee’s perception about materials procurement and payables management. Questionnaire is distributed to 60 employees for data collection. Analysis such as mean, factor and variance are used in analysis section.
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Sungatullina, L. B., and L. I. Khanova. "Improving the receivables and payables internal control management." International Accounting 22, no. 12 (2019): 1378–91. http://dx.doi.org/10.24891/ia.22.12.1378.
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ЛІХОНОСОВА, Ганна, and Єлизавета СТАВЦЕВА. "DIRECTIONS FOR IMPROVING THE ASSESSMENT OF THE USE OF PAYABLES AND RECEIVABLES." Herald of Khmelnytskyi National University. Economic sciences 330, no. 3 (2024): 305–10. http://dx.doi.org/10.31891/2307-5740-2024-330-46.
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The article discusses modern approaches to the assessment of payables and receivables of enterprises in order to increase the efficiency of financial resources management. The main attention is paid to the analysis of problems and shortcomings of existing assessment methods, as well as to the development of new approaches and recommendations for their improvement. The essence and role of payables and receivables in the financial activity of the enterprise is revealed. The main types of debts and their impact on the liquidity and financial stability of the enterprise are described. Traditional methods of assessing payables and receivables, including coefficient and comparative methods, are analyzed. Disadvantages and limitations of the existing approaches were identified, in particular, insufficient flexibility and limited ability to adapt to the specific conditions of the enterprise. New approaches to assessment are proposed, including the use of modern information technologies and automated management systems. The need to integrate risk analysis and cash flow forecasting into the debt assessment process is substantiated. Recommendations for the implementation of new methods of assessing payables and receivables have been developed. The advantages of using integrated approaches and their impact on increasing the financial stability of the enterprise are described. The main results of the research are summarized and the directions of further scientific developments in the field of financial management are determined. The article provides a comprehensive analysis of existing approaches to the assessment of payables and receivables, identifies their main shortcomings, and suggests ways to eliminate them. The developed recommendations will contribute to improving the management of financial resources of enterprises, increasing their liquidity and financial stability. Further research should be aimed at the practical implementation of the proposed approaches and their adaptation to various branches of the economy.
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Береговых, Т. В., and С. О. Леонтьев. "Improvement of the system of management of accounts receivable and payable of enterprises in the energy industry." Экономика и предпринимательство, no. 5(130) (June 25, 2021): 1053–56. http://dx.doi.org/10.34925/eip.2021.130.5.206.
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В статье обоснована необходимость ответственного подхода к управлению её дебиторской и кредиторской задолженностью, выявлены причины возникновения дебиторской задолженности у организаций энергетической отрасли. По результатам проведенного анализа предложена система мероприятий, позволяющих оптимизировать размер дебиторской и кредиторской задолженности с целью повышения финансовой устойчивости на примере конкретной организации. The article substantiates the need for a responsible approach to the management of its receivables and payables, and identifies the causes of the occurrence of receivables in the energy industry organizations. Based on the results of the analysis, a system of measures is proposed to optimize the amount of receivables and payables in order to increase financial stability on the example of a specific organization.
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IGHOROJE, JAMES ESE, and CHINWEOBO E. UMEORA. "WORKING CAPITAL MANAGEMENT OPTIMALITY AND FIRM VALUE: EVIDENT FROM THE NIGERIAN CONSUMER GOODS SECTOR." International Journal of Social Sciences and Management Review 05, no. 04 (2022): 114–24. http://dx.doi.org/10.37602/ijssmr.2022.5410.
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The paper studied working capital management Optimality (account receivable managementARM, account payable management-APM, inventory management-INVM, cash conversion cycle-CCC, and cash conversion efficiency-CCE)and value (Tobins’ Q) of 9 selected quoted consumer goods firms in Nigeria from 2013 to 2020. The data were gotten from the Annual Financial Statements of the 9 selected quoted consumer goods firms in Nigeria from 2013 to 2020 with each having 72 data points for each of the variables. The panel data methodology was based on the random and fixed effects models ascertained using the Hausman Specification test. Evidently, the study supported the Random Effect Model. Furthermore, The study laid claim that showed that Optimality (account receivable management-ARM, account payable management-APM, inventory management-INVM, cash conversion cycleCCC, and cash conversion efficiency-CCE) exhibited mixed effects on the value (Tobins’ Q) of the 9 selected quoted consumer goods firms in Nigeria from 2013 to 2020. Hence, the paper concludes that though account receivables, account payables, inventory, and cash conversion cycle are major drivers of working capital management but such effects are mixed. As such, managers of the consumer goods firms must ensure that it increases their unproductive bill payables while ensuring that all their unnecessary current liabilities are curtailed. More so, they should employ stock optimization techniques that can determine the right quantities of stock to hold. Lastly, they should try to improve the actual cash which was generated from sales within a given time period since cash conversion efficiency contributed minimally to firm value.
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ГЕРАСИМЕНКО О.А., ГЕРАСИМЕНКО О. А., КУЛИНИЧ М. И. КУЛИНИЧ М.И., and СОБОЛЕВ Р. О. СОБОЛЕВ Р.О. "MULTIDIMENSIONALITY OF ESSENTIAL APPROACHES TO THE DEFINITION OF RECEIVABLES AND PAYABLES AND THEIR IMPACT ON THE FINANCIAL CONDITION OF AGRICULTURAL ORGANIZATIONS." Экономика и предпринимательство, no. 5(166) (June 28, 2024): 945–48. http://dx.doi.org/10.34925/eip.2024.166.5.192.
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В статье на основе изучения различных аспекты сущности понятия «дебиторская задолженность» выделены три вида подходов для ее характеристики: юридический (основан на праве кредитора), бухгалтерский (в основе категория баланса) и финансовый (исходя их денежной суммы). Предложено авторское определение порядку действий по управлению дебиторской задолженностью организации: управление дебиторской задолженностью - это процесс, целью которого является предотвращение возникновения просроченной дебиторской задолженности, а в случае возникновения просроченной дебиторской задолженности - мероприятия, связанные с ее взысканием или реализацией. Разработаны критерии рациональности использования оборотных средств, исходя из сравнения размеров обязательств дебиторов и кредиторов, а именно - оптимальное соотношение при равенстве дебиторской и кредиторской задолженности; излишнее отвлечение финансов из оборота, увеличивающее зависимость от контрагентов при превышении дебиторской задолженности; с признаками неплатежеспособности и финансовой неустойчивости бизнеса при значительном превышении кредиторской задолженности. In the article, based on the study of various aspects of the essence of the concept of “accounts receivable,” three types of approaches are identified to characterize it: legal (based on the creditor's right), accounting (based on the balance sheet category) and financial (based on their monetary amount). The author's definition of the procedure for managing an organization's receivables is proposed: receivables management is a process whose purpose is to prevent the occurrence of overdue receivables, and in the event of overdue receivables, activities related to its collection or implementation. Criteria for the rational use of working capital have been developed, based on a comparison of the size of the obligations of debtors and creditors, namely, the optimal ratio when receivables and payables are equal; excessive diversion of finances from circulation, increasing dependence on counterparties when accounts receivable exceed; with signs of insolvency and financial instability of the business with a significant excess of accounts payable.
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Tomchuk, Olena. "ANALYTICAL PROVISION OF COMPUTATIONAL OPERATIONS AND DIRECTIONS FOR THEIR IMPROVEMENT." Green, Blue and Digital Economy Journal 4, no. 1 (2023): 82–98. http://dx.doi.org/10.30525/2661-5169/2023-1-8.
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The purpose of the article is the method of analysis of settlements with debtors and creditors and determination of directions for their improvement. Methodology. In the process of solving the tasks of scientific research, general and special methods of research were applied: descriptive-analytical method, systematic approach, method of analysis and synthesis, method of systematization, method of comparison, method of scientific generalization. Results. It has been proved that the anti-crisis management system should provide a proper approach to the enterprise's debts, for their effective management, ensure the optimal ratio of receivables and payables, prevent their overdue occurrence, systematically monitor payments. The current state of enterprise settlements is characterized by an unsatisfactory level of payment discipline of subjects of economic activity and requires strengthening of their control both by state authorities in the sphere of economic policy implementation and by enterprises themselves. It was determined that the main source of information is regulatory acts, accounting data and the main stages of analysis of accounting transactions. The analysis of the company's receivables allows to estimate the possible amount of income that can be received in the form of fines, penalties and fines from the debtors who are in arrears. Characteristics of qualitative changes of liabilities in the structure of the company's liabilities can be obtained using horizontal and vertical analysis of the balance sheet. Horizontal analysis allows to compare indicators of liabilities for different periods. The necessity of analyzing the dynamics of the accounting operations of a business entity is covered. The existence of overdue receivables, especially bad debts, which are classified as doubtful debts, as well as an unjustified increase in receivables in general, adversely affects the financial position of the Company and leads to a shortage of financial resources. Bad debts are eliminated by writing them off against the company's losses as receivables for which the statute of limitations has expired. Special attention should be paid to the date of incurrence of the payable debt, the term of its repayment, the time of delay in the return of the debt, the reasons for its incurrence. Practical implications. It is possible to accelerate the repayment of receivables by getting acquainted with the financial condition of buyers and gaining confidence in their further solvency, timely execution of settlement documents, granting discounts to buyers for shortening the terms of payment of invoices, introducing penalties for late payments, releasing goods to buyers on prepayment terms, etc. In order to effectively manage the liabilities of Trans-Market, LLC, it is necessary to monitor the ratio of receivables and payables, to monitor the status of payments for overdue receivables, to timely identify unacceptable types of liabilities, which primarily include overdue debts to suppliers, payments to the budget, etc. Value/originality. A comprehensive analysis of receivables and payables in the enterprise management system is optimal. It makes it possible to assess the real state of the company's receivables and payables, to identify "bottlenecks" in the management of this type of debt, and to develop measures aimed at reducing or recovering overdue or doubtful receivables.
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Supatmi Supatmi, Sutrisno Sutrisno, Erwin Saraswati, and Bambang Purnomosidhi. "Abnormal Related Party Transactions, Political Connection, and Firm Value: Evidence from Indonesian Firms." International Journal of Business and Society 22, no. 1 (2021): 461–78. http://dx.doi.org/10.33736/ijbs.3189.2021.
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This study aims to examine the effect of abnormal related party transactions (RPTs) on firm value and to investigate political connections as a moderator of the causal relationship. Our sample is 450 Indonesian firms listed at the Indonesia Stock Exchange during the period of 2014–2017 with a total of 1,724 firm-year observations. Based on the panel data regression test, our results demonstrate that abnormal RPTs, especially account receivables-related RPTs and account payables-related RPTs, decrease firm value. Further, the results empirically show that political connections negatively affect firm value. Political connections strengthen the effects of abnormal non-account receivable RPT assets and abnormal non-account payable RPT liabilities on firm value. Our findings imply that agency theory explains the impacts of political connections of Indonesian firms better than resource dependence theory.
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Маккаева, Р. С. А., and М. М. Килабов. "Analysis and the president on the state and the answer." Экономика и предпринимательство, no. 3(116) (May 15, 2020): 830–36. http://dx.doi.org/10.34925/eip.2020.116.3.172.
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Данная статья посвящена анализу внутрихозяйственному контролю над состоянием дебиторской и кредиторской задолженностью. Значительное место в оборотных средствах фирмы занимает оборотный капитал, на время отвлеченный из оборота и вложенный в текущие активы, представленный в виде дебиторской и кредиторской задолженности. За счет оборотных средств функционирует весь производственный процесс, ведь их характерной особенностью является скорость оборота. Именно поэтому так важно уделять внимание управлению и контролю над состоянием и использованием оборотных активов, в числе которых дебиторская и кредиторская задолженность предприятия. Ведь финансовая стабильность фирмы напрямую зависит от наличия и состояния оборотных средств. Также наличие достоверной информации о состоянии величины дебиторской и кредиторской задолженности необходимо руководству для принятия скорых решений по управлению оборотными средствами фирмы. This article is devoted to the analysis of internal economic control over the state of receivables and payables. A significant place in the working capital of the firm takes working capital, for a time diverted from circulation and invested in current assets, represented in the form of receivables and payables. Due to working capital functions the entire production process, because their characteristic feature is the speed of turnover. That is why it is so important to pay attention to the management and control of the wealth and use of working assets, including the receivables and payables of the company. After all, the financial stability of the company directly depends on the availability and state of working capital. Also, the availability of reliable information on the state of receivables and payables is necessary for management to make quick decisions on the management of working capital of the firm.
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Ratushna, Olha, Olena Matros, and Mykola Cherniak. "APPLICATION OF ECONOMETRIC MODELS IN THE ECONOMIC AND STATISTICAL ANALYSIS OF SETTLEMENTS WITH COUNTERPARTIES." Economic scope, no. 197 (February 11, 2025): 217–25. https://doi.org/10.30838/ep.197.217-225.
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An entity's settlement relationships are an important component of its operations. Therefore, the management of receivables and payables requires constant monitoring and attention from management. An important basis for making management decisions is an objective assessment of the state of settlements, which can be implemented through economic and statistical analysis. According to the results of the study, it was found that the most common method is the coefficient analysis, while factor analysis and analysis of the relationship and impact of settlements with counterparties on the financial condition and business performance of the enterprise are less common. The purpose of the study is to investigate the impact of analytical indicators of the status of accounts receivable and accounts payable on the current liquidity of enterprise on the basis of building an econometric model of the relationship. To assess the status of settlements with counterparties, the article calculates and analyses the turnover ratios of receivables and payables debts, and the liquidity of the researched business entity is determined. To objectively determine the impact and interrelation of the state of the enterprise's payment discipline, a multiple regression model of dependence of the current liquidity of the enterprise and the following factors was built: the ratio of accounts receivable and accounts payable and the share of other operating income in the total income of the enterprise. Further calculations have shown the existence of a close relationship between the selected indicators, and the Student's F-test has shown the adequacy of the built model. The use of two areas of analysis of the state of settlements with counterparties: financial analysis of ratios and correlation and regression analysis allowed to form an objective assessment of it. It has been found that the use of only coefficient analysis does not allow a detailed assessment of the situation at the enterprise and its characterisation, identification of weaknesses in management, and prevention of negative consequences. Therefore, the addition of correlation and regression analysis allowed to assess the effectiveness of management of the status of settlements over a long period of time, determine the nature of the relationships and predict the future value of the studied indicators.
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Ombui, Justin, Damaris Monari, Charles Kamau, Cromwell Kibiti, and Grieveesvon Muhoro. "Working Capital Management and its Effect on Financial Performance of Public Universities in Coastal Region Kenya." International Journal of Religion 5, no. 9 (2024): 977–94. http://dx.doi.org/10.61707/8dpc1806.
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Kenya's public universities face challenges such as budget cuts and declining enrollments. This puts pressure on institutions and highlights the need for strong financial management systems. The main goal of this research was to assess the influence of working capital management (WCM) on financial performance (FP) of coastal public universities in Kenya. The effects of cash, accounts receivable, accounts payable, inventories and the size of the university on financial performance were examined. The study utilized primary and secondary data analysis involving financial controllers and managers for primary data collection. Secondary data from 2013 to 2019 was also collected from financial reports of selected universities. The findings of this study demonstrated the beneficial effect of working capital management on financial performance. The study highlights the importance of implementing tailored financial management strategies for each institution based on their specific needs and size. Recommendations include focusing on cash management, improving receivables and payables management, optimizing inventory strategies, and considering university size when designing working capital approaches.
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Tkachuk, Lyudmila, and Chen Wenda. "THEORETICAL AND METHODOLOGICAL ASPECTS OF MANAGEMENT OF RECEIVABLES OF THE ENTERPRISE." Innovation and Sustainability, no. 1 (April 18, 2023): 84–90. http://dx.doi.org/10.31649/ins.2023.1.84.90.
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The article summarizes approaches to determining the essence of receivables. It was determined that scientists consider the company's receivables in the following directions: as a part of products sold but not paid for by customers; as a form of lending by the company to its customers; as one of the elements of current assets financed by own or borrowed funds. The compliance of national accounting provisions (standards) with international standards of accounting and financial reporting was analyzed, common features and differences of accounts receivable were identified.
 An assessment of the impact of receivables on the company's financial condition was made, the need to optimize its size and ensure timely collection of the debt was substantiated. Systematized measures to reduce risks in the management of receivables, aimed at ensuring control over the ratio of payables and receivables, which includes control, discounts, diversification of debtors, assessment of debtors and legal analysis of contracts, which includes risk insurance, self-insurance of risks, prepayment and limitation.
 An assessment of the control system of enterprises was carried out, since without it the amount of receivables may exceed an acceptable level, which will lead to a decrease in the amount of cash and the appearance of doubtful debts, which, accordingly, will reduce the revenue from the sale of products and the profit of the enterprise.
 The process of monitoring the company's receivables, which involves determining the maximum allowable amount of receivables, its analysis by types of debt, repayment terms, size and customers, is analyzed. The need to implement a set of measures to eliminate the causes that led to the emergence of overdue and bad receivables is substantiated, which involves assessing the borrower's creditworthiness by analyzing his financial condition, solvency and the probability of being declared bankrupt based on information from open sources.
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Štangová, Nora, and Agneša Víghová. "Company liquidity as a reflection of receivables and payables management." Entrepreneurship and Sustainability Issues 9, no. 2 (2021): 238–54. http://dx.doi.org/10.9770/jesi.2021.9.2(16).
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Sembiring, Indriana. "PENGENDALIAN SETIAP REKENING TERHADAP EFEKTIVITAS ARUS KAS PT. ABC." Jurnal Organisasi dan Manajemen 14, no. 2 (2018): 161–70. http://dx.doi.org/10.33830/jom.v14i2.161.2018.
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This study research aims to analysis how the accounts receivable control to effectivity of cash flow PT. ABC. The analysis performed is: analyzing the management of receivables system in the control and manage of the accounts receivable of the company. Data obtained from the company in the Financial report data form of period July 2013-June 2014. The analysis in this study has used the descriptive analysis, trend analysis, cash conversion cycle analysis, and Financial ratio analysis. The results of this research study indicate that PT. ABC implements a management, processing to manage and control receivables system based on SOP (Standard Operating Procedures), but in the actual implementation there are having some things that are not in accordance with SOP. The factors involve the amount of receivables PT. ABC such as credit sales percentage, sales terms, customer type, and collection of the billing invoice. The account receivable takes more than 30 days (n>30), it means that the amount of receivables owned is not enough to be converted into cash, impact to pay account payables to suppliers. The credit policy would like to apply, expected to provide optimal benefits and able to accelerate the collectible receivables so that it can be converted into cash immediately, to be used as working capital and pay the account payables PT. ABC.
 Tujuan penelitian ini adalah menganalisis pengendalian piutang dagang terhadap efektifitas arus kas. Data diperoleh dari perusahaan berupa data laporan keuangan periode Juli 2013–Juni 2014. Analisis yang digunakan dalam penelitian ini adalah analisis deskriptif, trend, cash conversion cycle, dan analisis rasio keuangan. Hasil dari penelitian ini menunjukkan bahwa PT. ABC memberlakukan sistem proses manajemen pengelolaan dan pengendalian piutang berdasarkan POS (Prosedur Operasi Standar), namun dalam pelaksanaannya masih terdapat beberapa hal yang tidak sesuai dengan POS. Faktor-faktor yang mempengaruhi besarnya jumlah piutang PT. ABC yakni persentase penjualan kredit, ketentuan penjualan, tipe pelanggan, dan usaha penagihan. Piutang tertagih membutuhkan waktu lebih dari 30 hari artinya bahwa jumlah piutang yang dimiliki belum cukup untuk dikonversi menjadi kas, sehingga hal ini juga berdampak kepada pelunasan hutang-hutang PT. ABC kepada supplier. Kebijakan kredit yang diterapkan diharapkan mampu memberikan keuntungan yang optimal dan mampu mempercepat piutang tertagih sehingga bisa segera dikonversi menjadi kas untuk digunakan sebagai modal kerja dan membayar hutang dagang PT. ABC.
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Yegon, Charles Kiprotich, Willy Muturi, and Oluoch Oluoch. "Effect of Working Capital Management Decisions on Financial Performance." International Journal of Finance & Banking Studies (2147-4486) 10, no. 4 (2021): 127–40. http://dx.doi.org/10.20525/ijfbs.v10i4.1432.
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Collapse of companies in Kenya has been on the rise in the recent past. Far reaching endeavors to resuscitate these liquidating and ailing firms have generally been attributed on their corporate financial management decisions. Multinationals and KTDA managed tea firms in Kenya have been performing poorly in the recent past where audited financial statements and reports revealed a warning signal on its financial performance. Specific objectives of the study were to determine the effect of the accounts receivables period, accounts payables period, inventory conversion period, cash conversion cycle, financing policy, investing policy and moderating effect of ownership structure on financial performance. The study illustrated that accounts receivables collection period is negatively related to return on assets (? = -0.1299, p=0.0160), accounts payables payment period is negatively related to return on assets (? = -0.0843, p = 0.0070), inventory conversion period is negatively related to return on assets (?= -0.0623, p=0.0180), cash conversion cycle is negatively related to return on assets (? = -0.1107, p = 0.0030), financing policy is positively related to return on assets (? = 0.1589, p = 0.0000), investing policy is positively related to return on assets (? = 0.0291, p = 0.0000).
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Omolara Patricia Olaiya, Olayinka Rasheed Aliu, Temitayo Oluwadamilola Adesoga, Olajumoke Oluwagbemisola Ajayi, Fehintola Moyosore Sotomi, and Oluwabusola Dorcas Olagunju. "Evaluating the influence of working capital management on corporate performance." World Journal of Advanced Research and Reviews 22, no. 3 (2024): 2030–37. http://dx.doi.org/10.30574/wjarr.2024.22.3.1974.
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Effective working capital management involves strategically managing short-term assets and liabilities to maintain financial stability. This includes managing cash, inventory, accounts receivable, and accounts payable. Optimizing cash conversion, timely payment collection, avoiding excess stock, and managing accounts payable ensure liquidity, minimize financing costs, and improve profitability. Studying the impact of working capital management on the financial performance of consumer goods firms is crucial, as it provides insights into how these practices can enhance profitability and support sustainable growth in a competitive sector. Understanding these dynamics helps firms refine their strategies to achieve better financial health and operational efficiency. This study investigates the impact of working capital management on the financial performance of listed consumer goods firms in Nigeria, highlighting the significance of optimizing cash flow and balancing current assets and liabilities. By focusing on the cash conversion cycle, accounts receivable turnover, and inventory turnover, the research evaluates their effects on return on assets (ROA) using ordinary least square regression (OLS) analysis. The findings aim to provide insights into how strategic management of working capital components can enhance profitability and contribute to sustainable business growth. By analyzing financial data from listed companies, the study offers empirical evidence that effective working capital management through maintaining optimal levels of receivables, inventory, and payables supports smoother operations, reduces financing costs, and increases ROA. This research underscores the strategic importance of working capital management in achieving financial stability and operational efficiency, with implications for both practitioners and academics in the Nigerian context.
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Omolara, Patricia Olaiya, Rasheed Aliu Olayinka, Oluwadamilola Adesoga Temitayo, Oluwagbemisola Ajayi Olajumoke, Moyosore Sotomi Fehintola, and Dorcas Olagunju Oluwabusola. "Evaluating the influence of working capital management on corporate performance." World Journal of Advanced Research and Reviews 22, no. 3 (2024): 2030–37. https://doi.org/10.5281/zenodo.14769116.
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Effective working capital management involves strategically managing short-term assets and liabilities to maintain financial stability. This includes managing cash, inventory, accounts receivable, and accounts payable. Optimizing cash conversion, timely payment collection, avoiding excess stock, and managing accounts payable ensure liquidity, minimize financing costs, and improve profitability. Studying the impact of working capital management on the financial performance of consumer goods firms is crucial, as it provides insights into how these practices can enhance profitability and support sustainable growth in a competitive sector. Understanding these dynamics helps firms refine their strategies to achieve better financial health and operational efficiency. This study investigates the impact of working capital management on the financial performance of listed consumer goods firms in Nigeria, highlighting the significance of optimizing cash flow and balancing current assets and liabilities. By focusing on the cash conversion cycle, accounts receivable turnover, and inventory turnover, the research evaluates their effects on return on assets (ROA) using ordinary least square regression (OLS) analysis. The findings aim to provide insights into how strategic management of working capital components can enhance profitability and contribute to sustainable business growth. By analyzing financial data from listed companies, the study offers empirical evidence that effective working capital management through maintaining optimal levels of receivables, inventory, and payables supports smoother operations, reduces financing costs, and increases ROA. This research underscores the strategic importance of working capital management in achieving financial stability and operational efficiency, with implications for both practitioners and academics in the Nigerian context.
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Shyian, N. "Assessment of business activity indicators of enterprises in the conditions of martial law." Ekonomìka ta upravlìnnâ APK, no. 2(185) (November 23, 2023): 86–95. http://dx.doi.org/10.33245/2310-9262-2023-185-2-86-95.
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The article analyzes the efficiency of agricultural enterprises in the pre-war period and the period of Russian military aggression. The author has examined indicators of business activity of agricultural enterprises in Kharkiv region in 2018, 2020 and 2022. A decrease in the entire set of these indicators (asset turnover ratio, current assets turnover ratio, fixed assets turnover ratio, receivables and payables turnover ratios, equity turnover ratio) was established in 2022 as compared to their values in 2018 and 2020. These research results confirmed the deterioration of the performance indicators of agricultural enterprises under martial law. The article estimates reliability of differences between the average values of the analyzed indicators in the groups in 2020 and 2022 ,using the Student's t-test. The probability that the average values may be random is almost 0. That is, the obtained average values of business activity indicators of agricultural enterprises in 2020 and 2022 are reliable and nonrandom. The research, using factor analysis, confirms relationship between the studied features (variables). In particular, the author determined a high degree of correlation in 2020 between the turnover ratio of assets and the turnover ratio of current assets and between the turnover ratio of receivables and the turnover ratio of payables. In 2022, a high degree of interrelationship remained only between asset turnover ratios and current assets turnover ratio. This may indicate a much greater differentiation of turnover ratios of receivables and payables within the population, which in turn, may be due to factors of external influence, in particular, military actions. There is, however, a question on the necessity to conduct a separate study of the influencing factors on the degree of interrelationship between the turnover ratios of receivables and payables in agricultural enterprises. Key words: efficiency, agricultural enterprises, indicators of business activity, reliability, Student's t-test, factor analysis, military actions.
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Khomуn, Petro, Tetiana Nosko, Anastasia Koltutska, and Victoria Rymlyanska. "Theoretical aspects of accounting and analysis of receivables of the enterprise." Socio-Economic Problems and the State 25, no. 2 (2021): 413–20. http://dx.doi.org/10.33108/sepd2022.02.413.
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The activity of any enterprise is always accompanied by calculations, and this in turn leads to receivables or payables. The article presents a topical and complex issue of accounting – the theoretical aspects of analysis, research of receivables at the enterprise. Modern economic processes in the national macroeconomic environment require businesses to implement and search for progressive approaches to the problems of payment and settlement relationships between enterprises, which in turn requires proper accounting of receivables for management decisions. A significant part of the company's assets is receivables, it is reflected in the balance sheet, has its own classification, characteristics and other features. The organization of accounting for receivables for enterprises of any form of ownership is important because it helps to organize information, transparency and reliability of data on settlement operations on debt rights (with debtors). Accounting for receivables is regulated by UAS 10, which allows you to analyze and investigate unresolved issues. Having a normal state, receivables will bring profit to the company in the future, but at this time, the state of most buyers is unstable and volatile, so the debt becomes doubtful or, at worst, bad. In this situation, the company incurs costs that can have an extremely negative impact on its investment attractiveness, financial condition, and sometimes leads to bankruptcy. The problem of effective management of receivables comes to the fore. Accounts receivable occupies an important place for any company, so in essence it is a tool for lending to the debtor for the goods received by him, the work or services provided on an interest-free basis. The purpose of the article is to determine the essence of receivables; identification of classification features by which it is grouped; methods of analysis that allow you to develop strategic decisions in the process of managing it. Tasks for receivables management, its main directions and objects are defined. The scientific novelty of the obtained results lies in the developed recommendations and proposals for improving the theoretical foundations of accounting and analysis of receivables. The practical significance of the results is that they can be used in the activities of the enterprise for the effective organization of accounting and analysis of receivables.
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Rimon Micheal. "The Impact of Working Capital Management on Business Profitability: Evidence on Egyptian Banks." Journal of Information Systems Engineering and Management 10, no. 52s (2025): 304–21. https://doi.org/10.52783/jisem.v10i52s.10715.
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The purpose of this research is to investigate the influence of working capital management on business performance. Inventory management, as well as account receivable and payable management, are all part of working capital management. Previous studies were conducted extensively in the case of developed countries. studies on working capital of banks in developing countries especially in Egypt are limited in addition, previous studies were limited to nonfinancial institutions, manufacturing companies and some companies listed in the stock market moreover it’s important to address other performance measures such as return on investment and profit margin Therefore, This study seeks to fill this existing gap and answer the question; what effect does the working capital management have on profitability of Egyptian banks. The sample analyzed covers 21 listed banks in the Egyptian stock exchange from the period 2016 to 20223. The banks’ profitability has been measured by 3 different proxies which are ROA, ROCE and ROI. However, the independent variables utilized in this paper are Account Receivables Period (ARP), Account Payables Period (APP) and Current ratio to show the impact of the working capital. The results showed a significant positive relationship between working capital on ROA, ROCE & ROI, however a significant negative effect of APP on ROI.
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Olubukola Otekunrin, Adegbola, Tony Ikechukwu Nwanji, Gabriel Damilola Fagboro, Johnson Kolawole Olowookere, and Oladipo Adenike. "Does working capital management impact an enterprise’s profitability? Evidence from selected Nigerian firms." Problems and Perspectives in Management 19, no. 1 (2021): 477–86. http://dx.doi.org/10.21511/ppm.19(1).2021.40.
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This study examined the impact of working capital management on the profitability of selected quoted agricultural and agro-allied companies (from 2012 to 2016) in Nigeria. Secondary data were extracted from eighteen quoted agricultural and agro-allied companies in Nigeria, four of which are agricultural companies out of the twenty-three in Nigeria. Descriptive research design and regression analysis were used. Working capital management was measured using the trade receivables collection period, trade payables, payment period, inventory turnover period, and cash conversion cycle, while profit before interest and tax measured profitability. This study found that working capital management and profitability are related to the agriculture and agro-allied sector in Nigeria. The result shows the trade receivables collection period and profitability are negatively related. The result also shows the trade payables payment period and profitability are positively related. The result shows that the inventory turnover period and profitability are related, the cash conversion cycle and profitability are positively related. The conclusion is that working capital management and profitability are related. If the management of firms takes efficient and effective decisions in managing the company’s working capital, all things being equal, the maximization of the firm’s profitability, value, and shareholders’ wealth can be guaranteed. Consequently, agency costs asserted by agency theory would be eliminated automatically. AcknowledgmentAll researchers and non-researchers that contributed to this paper are highly appreciated.
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Ngari, Alice Ruguru. "Effect of Cash conversion Cycle on Profitability: A case study of Binathman Supermarkets in Kenya." South Sahara Multidisciplinary Journal 1, no. 1 (2023): 8–16. http://dx.doi.org/10.61250/ssmj/v1.i1.2.
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The objective of this research study is to investigate the relationship between the cash conversion cycle (CCC) and profitability in the context of Binathman Household Supermarket in Mombasa County. The study examines how the management of receivables, cash, payables, and inventories impact the supermarket's profitability. The literary examination scrutinizes antecedent research investigations that have explored the connection between managing working capital and profitability in various sectors. Theoretical frameworks, for example, the operating cycle theory and the trade-off theory of liquidity, give important insights into the variables that influence decisions on working capital and their impact on profitability. The study utilizes multiple linear regression analysis to evaluate the effect of inventory conversion, receivables conversion, and payables conversion on profitability. The study employs secondary data and measures profitability through return on assets (ROA). The research findings indicate a significant negative relationship between the cash conversion cycle and profitability. A shortened CCC leads to increased profitability by improving cash flow, reducing financing costs, and enhancing operational efficiency.
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Ruslan, Zuhri, and Anggoro Budi Nugroho. "Collectibility Improvement In PT. Kaltim Prima Coal Receivables Management: A Framework Roadmap Proposal." Jurnal Sosial Sains 2, no. 1 (2022): 149–58. http://dx.doi.org/10.36418/sosains.v2i1.320.
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Background : The Importance of efficient working capital management is indisputable given that a firm’s viability relies on the financial manager’s ability to effectively manage receivables, inventory, and payables. One of widely used measurement to calculate the effectiveness of working capital management is Cash Conversion Cycle. Purpose : Traditional Cash Conversion Cycle is calculated using items from Financial Statement. However, it is proofed to be overstated compare to the actual calculation. Based on a comparison with Cash Conversion Cycle of another company listed on Indonesian Stock Exchange, Cash Conversion Cycle of PT Kaltim Prima Coal seems to be superior with lower days it needs to convert inventory into cash and longer time to pay its payables. Method: This research uses a quantitative approach method. Results : The research found that based on the regression method, days of late payment and sales amounts of late payment have significant relationship with Profit. Days of late payment and sales amounts of late payment have significant relationship with ROA. And, Days of late payment and sales amounts of late payment also have significant relationship with NPM. Conclusion : Variables of tourist attraction and price simultaneously influence the decision to visit the Blue Kersik beach, Marangkayu.
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AR, Ganavi, and Dr D Jogish. "A STUDY ON RECEIVABLE MANAGEMENT AT INDIAN TOBACCO DIVISION MEENAKUTTE VILLAGE JALA HOBALI." INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT 07, no. 10 (2023): 1–11. http://dx.doi.org/10.55041/ijsrem26615.
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This research explores the field of receivable management with the goal of offering a thorough examination of the numerous practices and techniques used by organizations to maximize productivity and improve financial performance. A company's liquidity and profitability are substantially impacted by receivables, a crucial part of working capital. This research analyses the complex link between receivable management practices and their related consequences on cash flow, operational expenses, and overall financial health by looking at a varied variety of sectors and firm sizes. Keywords: Accounts payable management, working capital, financial performance, cash flow, efficiency, credit policies, collection strategies, profitability, trade credit, , credit risk, debtor turnover, financial ratios, and receivables turnover.
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Rashid, Aden Abdi, Peter Butali, and Robert Odunga. "Effect of Working Capital Management Practices on Financial Performance of Hotels in Kenya: A Case of Selected Three Star Hotels in Garissa Town." International Journal of Finance 9, no. 3 (2024): 42–61. http://dx.doi.org/10.47941/ijf.1986.
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Purpose: The main objective of this study was the effect of working capital management practices on the financial performance 3 star hotels in Garissa County. The study objectives was; to examine the influence of cash management practices, the effect of payables management practices, and effect of receivables management practices on financial performance 3 star hotels in Garissa town. Methodology: Three theories underpinned the study that is Theory of Working Capital Management, Cash Conversion Cycle Theory and Transaction Cost Theory. The research design used in the study was descriptive. The 171 employees of the chosen three-star hotels in Garissa Town were the target population where the sample of 120 participants was determined using Taro Yamane's formula (1967). Primary data were used in the study and was collected through a questionnaire through a drop-and-pick method. The Statistical Package for Social Sciences was used to analyze the data. Findings were presented using bar charts, graphs, and diagrams. Findings: The descriptive results revealed that all respondents were in agreement with statements on working capital management practices and its effect on financial performance. Additionally, the model summary results established that working capital management practices (cash management practices, payable management practices, and receivable management practices) accounts for 73.3% of variations in the financial performance of 3 star rated hotels in the county. The study further established that cash management practices, payable management practices, and receivable management practices bears a positive and significant effect on financial performance of hotels operating in Garissa Town as depicted by beta values of 0.593, 0.276 and 0.471 and significant values of 0.000, 0.004 and 0.000 respectively. The results imply that the financial performance of hotels operating in Garissa Town changes with respective beta values when each of the independent variable is increased with one unit. Unique Contribution to Theory, Practice and Policy: The study provided recommendations to the management of the hotels operating in Garissa Town to enhance working capital management practices such as cash management practices, payable management practices, and receivable management practices since the practices positively and significantly affects the levels of financial performance of the hotels.
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Shaikhanova, N. K., K. J. Sholpanbaeva, A. A. Apysheva, and A. Zhaparova. "THEORETICAL ASPECTS OF THE MANAGEMENT OF ACCOUNTS RECEIVABLES AND PAYABLES OF THE ENTERPRISE." Statistika, učet i audit 90, no. 3 (2023): 19–27. http://dx.doi.org/10.51579/1563-2415.2023-3.02.
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Any enterprise in the course of its economic activity deals with transactions for the sale of goods, the provision or receipt of works and services. Also, the enterprise has obligations for taxes to the state budget, payment of remuneration for loans issued to it by banks and other commercial organizations, settlements on loans received from other enterprises.
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Adhie, Maria Yudith Yubellia Ageng Millenia, and Supatmi Supatmi. "Pengaruh Transaksi Pihak Berelasi Terhadap Kompensasi Manajemen Pada Industri Keuangan Di Indonesia." Jurnal Riset Akuntansi dan Keuangan 10, no. 2 (2022): 345–60. https://doi.org/10.17509/jrak.v10i2.45016.
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This study aims to prove the effect of related party transactions on management compensation. The research sample consists of 99 financial companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2020 period with a total of 297 firm-years of observation. The analysis technique uses panel data regression analysis. The results of the study indicate that the more companies carry out related party transactions related to trade receivables and related party transactions related to liabilities other than trade payables, it is proven that the higher the compensation received by the company's board of directors and board of commissioners. However, related party transactions related to assets other than trade receivables and related party transactions related to liabilities related to trade payables proved to have a negative effect on the compensation received by the company's board of commissioners. The effect of tunneling related party transactions on the compensation of the board of directors and the board of commissioners was found to be greater than that of propping related party transactions.
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Ruslan, Zuhri, and Anggoro Budi Nugroho. "Collectibility Improvement In PT. Kaltim Prima Coal Receivables Management: A Framework Roadmap Proposal." Jurnal Sosial Sains 2, no. 1 (2022): 149–58. http://dx.doi.org/10.59188/jurnalsosains.v2i1.320.
Full textAbstract:
Background : The Importance of efficient working capital management is indisputable given that a firm’s viability relies on the financial manager’s ability to effectively manage receivables, inventory, and payables. One of widely used measurement to calculate the effectiveness of working capital management is Cash Conversion Cycle. Purpose : Traditional Cash Conversion Cycle is calculated using items from Financial Statement. However, it is proofed to be overstated compare to the actual calculation. Based on a comparison with Cash Conversion Cycle of another company listed on Indonesian Stock Exchange, Cash Conversion Cycle of PT Kaltim Prima Coal seems to be superior with lower days it needs to convert inventory into cash and longer time to pay its payables. Method: This research uses a quantitative approach method. Results : The research found that based on the regression method, days of late payment and sales amounts of late payment have significant relationship with Profit. Days of late payment and sales amounts of late payment have significant relationship with ROA. And, Days of late payment and sales amounts of late payment also have significant relationship with NPM. Conclusion : PT. Kaltim Prima Coal are recommended to implement analysis of Risk Quadrant on periodic basis, to arrange Letter of Credit training to adopt Company Bank’s point of view in reviewing the Letter of Credit, to implement Letter of Credit checklist to reduce discrepancy rate, to arrange objective review of examining the extra staff requirement, and to develop Credit Policy.
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Ijuwo, Amity. "EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY OF LISTED CONSUMER GOOD COMPANIES IN NIGERIA." Journal of Advance Research in Business, Management and Accounting (ISSN: 2456-3544) 10, no. 2 (2024): 12–25. http://dx.doi.org/10.61841/8me8vb16.
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This ex post facto study investigates the effect of Working Capital Management (WCM) on the profitability of 10 listed consumer goods companies in Nigeria over the period 2017-2022. Utilizing a panel data analysis framework with fixed and random effect regression, Jarque Bera statistics and Breusch-Pagan LM for assessing heteroscedasticity, the study reveals valuable insights into the relationship between WCM variables and Return on Assets (ROA). The positive and significant coefficient of 0.000617 for the Cash Conversion Cycle (CCC) suggests that a deliberate and strategic extension of the cash conversion cycle is associated with increased profitability. The study also explores the intricate relationships, revealing that fluctuations in inventory turnover, variations in accounts receivables and payables, and certain firm characteristics like size and leverage may not be robust determinants of profitability. These findings emphasize the need for tailored working capital management strategies based on specific industry characteristics and organizational contexts. The study's implications underscore the importance of meticulous cash conversion cycle management for consumer goods companies seeking to optimize financial health and operational effectiveness. While inventory turnover, accounts receivables, and accounts payables are crucial components of WCM, their individual variations may not be decisive factors influencing overall financial success. This research contributes to the growing body of evidence on the intricate relationship between WCM and profitability, offering valuable insights for financial decision-makers in the consumer goods sector in Nigeria.
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Iqbal, Nadeem, Naveed Ahmad, and Zeeshan Riaz. "The Relationship between Working Capital Management and Profitability: Evidence from Pakistan." International Letters of Social and Humanistic Sciences 20 (January 2014): 14–25. http://dx.doi.org/10.18052/www.scipress.com/ilshs.20.14.
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In this paper secondary data is used for analysis of working capital on profitability. In this research paper we take working capital as independent variable and net operating profit as dependent variable. We have found a significant negative relationship between net operating profitability and the average collection period, inventory turnover in days, average payment period and cash conversion cycle for a sample of Pakistani firms listed on Karachi stock exchange. Previous theoretical research predicts negative relationship between cash conversion cycle and corporate profitability. The results of regression indicate that the coefficient of account receivable is negative; that is, the increase or decrease in average collection period wills significantly affect the profitability of the firm. According to inter-item correlation matrix the relationship of account receivables, account payables and inventory with profit shows positive relationship but cash conversion cycle, financial debt and financial assets shows negative relationship with profitability. Inventory shows the positive relationship with dependent variable which proves that working capital management has a positive effect on firm’s probability.