The Relationship between Working Capital and Profitability of Companies Operating in the Food Industry in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F22%3AA0000342" target="_blank" >RIV/47813059:19520/22:A0000342 - isvavai.cz</a>

Result on the web

<a href="https://www.scopus.com/record/display.uri?eid=2-s2.0-85141211499&origin=resultslist&sort=plf-f#funding-details" target="_blank" >https://www.scopus.com/record/display.uri?eid=2-s2.0-85141211499&origin=resultslist&sort=plf-f#funding-details</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.7160/aol.2022.140308" target="_blank" >10.7160/aol.2022.140308</a>

Result language

angličtina

Original language name

The Relationship between Working Capital and Profitability of Companies Operating in the Food Industry in the Czech Republic

Original language description

The aim of this article is to determine the relationship between working capital and profitability of companies operating in the food industry in the Czech Republic and then find out how working capital affects the profitability of these companies from 2009 to 2019. In the first part of the research we estimate the links between working capital measured by variables such as cash conversion cycle, current assets ratio, current liabilities ratio, working capital ratio and corporate profitability measured by return on sales. In the next part of the research, we estimate the effect of working capital measured by variables such as cash conversion cycle, current assets ratio, current liabilities ratio, working capital ratio on corporate profitability measured by return on sales. Correlation analysis and the GMM method will be used to determine the relationship between working capital and the profitability of companies and how working capital affects the profitability of these companies. The results of the correlation analysis showed statistically significant links between return on sales and variables such as cash conversion cycle, current assets ratio, current liabilities ratio and working capital ratio. The results of the GMM method showed a statistically significant effect of variables such as cash conversion cycle, current assets ratio, current liabilities ratio and working capital ratio on the profitability of companies measured by the return on sales indicator. All mitigated effects have been demonstrated for companies operating in the food industry as a whole, as well as in the production of food products and beverages.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Agris On-line Papers in Economics and Informatics

ISSN

1804-1930

e-ISSN

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Volume of the periodical

14

Issue of the periodical within the volume

3

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

14

Pages from-to

97-110

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85141211499