The influence of working capital management on the food industry enterprises profitability

The article presents the results of working capital management efficiency in the food industry in Poland and selected countries of the Eurozone. The research was conducted on the basis of the unpublished data by the Polish Central Statistical Office in the trade structure and dimension of food indus...

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Bibliographic Details
Published in:Contemporary economics 2011-12, Vol.5 (4), p.68-81
Main Authors: Bieniasz, Anna, Gołaś, Zbigniew
Format: Article
Language:English
Subjects:
Current liabilities
Economic theory
Efficiency
Eurozone
Food
food industry
Food processing industry
rate of return
Rates of return
Regression analysis
Research methodology
Stockholders
Studies
Turnover
Working capital
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Summary:The article presents the results of working capital management efficiency in the food industry in Poland and selected countries of the Eurozone. The research was conducted on the basis of the unpublished data by the Polish Central Statistical Office in the trade structure and dimension of food industry enterprises in Poland in the period of 2005-2009, and comparatively, in respect of the food sector in selected Eurozone countries. The working capital management efficiency was assessed by means of the inventory, accounts receivables, current liabilities turnover cycles, cash conversion cycle, and in respect of the obtained rates of return from non-financial assets. The research proved that in the food industry sectors with the shortest working capital cycles, relatively higher rates of profitability were obtained. A favorable influence of working capital cycles reduction of the profitability was also verified by means of a multiple regression analysis.
ISSN:1897-9254
2084-0845
2300-8814
DOI:10.5709/ce.1897-9254.29