Working capital management performance of firms listed on Bursa Malaysia / Abu Thahir Abdul Nasser ... [et al.]

This research paper investigated the working capital management (WCM) performance of 252 firms listed on Bursa Malaysia and identifed practices and policiesfor WCM to enhance efficiency in cash flow from operations. It also determined whether the size, profitability, inventory, and the current assets financing policy could enhance the WCM performance. The variables were 'Cash Conversion Efficiency' (CCE), afinancial performance measure, and 'Overall Working Capital Performance Ranking', a non-financial performance indicator. The findings revealed that the inventory, size, and profitability had significantly influenced the WCM performance. It was also identified that there was a mild positive relationship between the aggressive methodofworking capital financing and the CCE; and the ideal WCM practices and working capital (WC)financing policies to be adopted in firms to maximise the wealth ofthe shareholders

Analysis Of Working Capital Management Performance In Malaysian Consumer Product Companies

The purpose of this study is to examine the relationship between the size of the firm and its performance in working capital management. Working capital manaagement plays a vital role to enhance the economic performance of the corporate sector. This study also established evidence that the performance in working capital management is significantly affected by the profitability and current assests of the firms

Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman

The main purpose of this case study is to benchmark the working capital management performance (WCM) among Air Asia, Malaysia Airlines, and Qantas with an intention to identify the best practices in WCM to enhance operational efficiency in cash flow from operations. This case study is conducted by employing generic benchmarking among Air Asia a low cost airline, Malaysia Airlines and Qantas full service airlines, with an intention to provide valuable insights into operational efficiency and the pattern of current assets investment and financing policies adopted in the airline industry. "Cash conversion efficiency", a financial performance indicator is used to measure the operational efficiency, while "Days of working capital" a non financial performance indicator is used to identify the current assets investment and financing policies adopted in the firms studied. The findings of this study reveal that the low cost airline out performs the government and private owned full service airlines in the WCM. The government and private owned full service airlines studied do not have sufficient fund for their working capital requirement and the existing working capital in all the three airlines studied have not been utilized efficiently. This study also identifies an inverse relationship between the aggressive level of working capital financing and the cash conversion efficiency. Currently there is no available literature focusing exclusively on the WCM performance in the airline industry which may throw new light and facilitate the process ofimproving cash flow from operations and reducing the cost ofcapital. A better understanding ofthe WCMpractices in airline industry is especially beneficial because ofthe needfor efficient utilization ofthe working capital employed to achieve enhanced operational efficiency