538,736 research outputs found

    Impact of working capital management on profitability of the food processing and consumer goods business in New Zealand

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    The purpose of this study is to investigate the impact of working capital management (WCM) on the profitability of fifteen food processing and consumer service business listed in the New Zealand Exchange Board. The data were collected through the annual reports of the companies for five years and arranged by using Excel. The working capital was measured by it components like Account receivable period, Account payable period, Inventory conversion period, and cash conversion period. Whereas profitability was measured by Return on Assets, Return on Equity and Net profit margin. To analyse the relationship between WCM and profitability, regression analysis and correlation were used by making WCM components as independent variables and profitability as dependent variables. The correlation result reveals that there is negative relationship between the WCM components and profitability, and longer CCC leads to less profitability of the firm. Whereas the regression result reveals the negative relationship between ICP and ROA. Similarly, there is a negative relationship between ARP and ROE, and also between APP and NPM. Therefore, it is concluded that WCM have very much impact on the profitability of the business and businesses are recommend to decrease their ICP, ARP and CCC in order to increase profitability

    Profitability Of Dividend Payers

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    Most of the firms are looking for profits as their main objective which make them develops strategies to get the target profit. In circumstances that firms get the target profit, then normally they shall distribute the earnings as dividends to shareholders. The objective of this study is to provide an empirical finding about profitability between firms namely higher dividend payers and lower dividend payers. This study uses data of listed firms in period of 2010 to 2016 which drawn from Indonesia Stock Exchange. This study uses 146 listed firms in period of 2010 to 2016 which gives 1022 as total observe data. In term of hypothesis testing, this study uses mean difference test. This study finds that firms with higher dividends have better profitability rather than the lower which means this study accepts the hypothesis that higher dividend payers have better profitability

    Employees, Firm Size and Profitability of U.S. Manufacturing Industries

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    We examine the relation between firm size and profitability within 109 SIC four-digit manufacturing industries. Depending on our measure of profitability, we find that profitability increases at a decreasing rate and eventually declines in up to 47 of our industries. No relation between profitability and size is found in up to 52 of our industries. These two categories account for 97 of our 109 industries. Profitability continues to increase as firms become larger in up to 11 industries. Hence, the relation between size and profitability is industry specific. But, regardless of the shape of the size profitability function, we find that profitability is negatively correlated with the number of employees for firms of a given size measured in terms of total assets and sales. These results are puzzling in the context of work by others who report that common stock returns are negatively correlated with size when size is measured by the market value of a company or with the work of those who argue that size is a proxy for risk. Interpreted against these works, our findings may mean that large firms earn excess returns, that small firms fail to earn their cost of capital, or that accounting returns simply behave differently than market returns with respect to firm size

    COMPARATIVE ANALYSIS ON DETERMINANTS OF PROFITABILITY OF DOMESTIC AND FOREIGN BANKS IN INDONESIA (EMPIRICAL STUDIES ON COMMERCIAL BANKS USING MONTHLY REPORT OF BANKS FINANCIAL STATEMENTS PERIOD OF 2014.1-2015.12)

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    Profitability has an important role for bank sustainability, profitability is one of the most important pillars for bank in running their activities. Bank in generating profit, there are some things that must be considered, for instance is determinant factors that will affect the growth of profitability. By knowing the determinant factors of profitability, banks will be more prudent in doing strategies for generating greater profit and to face the unpredictable circumstances. The purposes of this research are to analyse the influence of Total Assets, Equity, Loan Loss Provisions, Off-Balance Sheet Activities, Overhead Costs, and Lagged Profitability to Profitability (ROA and NIM) of Domestic and Foreign Banks that operating in Indonesia period of 2014 – 2015, and also this research will present the comparative analysis of both bank groups (domestic and foreign). The population of this study were 66 Domestic Banks and 39 Foreign Banks (commercial banks) operating in Indonesia. This research also used monthly report of banks financial statements over the period of 2014(1)-2015(12). In the fact, data of monthly reports will provide more complete and accurate information to give a better result. This study used the cross-section method in taking the population. The results of this research had found various results, proving that the determinant factors used in this research had an influence on Foreign and Domestic Banks profitability. But there were some results that were not in accordance with the hypotheses that had been made. From this research also obtained, that there was a difference between influence of determinants factors to Domestic Banks profitability with influence of determinant factors to Foreign Banks profitability

    Product market reform and innovation in the EU

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    European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth. European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth

    Profitability Analysis of the Enterprise

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    Profitability of Organic Farming Systems

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    The majority of the farmers I meet, that are interested in organic farming are financially driven. It is important that the message on financial returns from organic farming is clear. In cattle production systems when we look at the figures, the majority of cattle farmers are making a positive gross margin but are spending some of the premia cheque to cover fixed costs. In the organic situation costs are generally lower but so is gross output. The net margin delivered on organic beef farms is on average higher than the average beef farmer. The targets I have set on the paper that I believe are achievable on the majority of organic beef farms and should be profitable enterprises. When the financial analysis is completed on organic dairy farms, it must be noted that when measured in net margin achieved per litre or per cow the results are as good as the best dairy farmers in the country, however the key issue is stocking rate. Only dairy farmers stocked up to about 1.7 livestock units per hectare will increase net margin. Farms stocked higher than this will loose out unless the milk price gap widens significantly. In the tillage sector my colleagues produce crop budgets each year, last year the budgets went out the window as harvest returns disastrous due to the weather. The organic tillage budget produced in the paper shows excellent returns for organic tillage crops. The cost of imports and lack of supply is keeping the price up, the weakening of sterling may have an effect later on, however even if organic grain prices drop significantly, the returns are mush better than conventional tillage. This is an option Irish tillage farmers should be exploring
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