Working Capital Management and Return on Assets of Manufacturing Industry of Peru

Wagner Euoc Vicente-Ramos, Mananela Roxana Ames Porras, Roberson Meza Quispe, Miguel Angel Rojas Zacarías

Research output: Contribution to journalOriginal Articlepeer-review

3 Scopus citations

Abstract

Tins article contributes to the increase in knowledge and existmg theory about the administration of working capital and its relation to profitability. Usuig a sample of 23 compames listed on the Luna stock exchange during the period 2009-2018. There is a negative relationship between profitability (ROA) and the average inventory period (PPI), in the same way a negative relationship between profitability and the average collection period (PPC). finally a positive relationship between profitability and the period average payment (PPP). It is concluded that a company of the industrial sector in Pern, manages to be more efficient, effective and competitive insofar as it improves the management of working capital, whicfi is achieved if it achieves effective management of financial resources, an equitable policy of Customer credit, proper inventory management and proper management of supplier leverage and short term.

Original languageAmerican English
Pages (from-to)382-389
Number of pages8
JournalInternational Journal of Financial Research
Volume11
Issue number2
DOIs
StateIndexed - 2020

Bibliographical note

Publisher Copyright:
© 2020 Sciedu Press.

Keywords

  • Cash conversion cycle
  • Management of working capital
  • Profitability
  • Return on assets

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