Prethodno priopćenje
https://doi.org/10.18045/zbefri.2022.2.459
The impact of working capital management on SME profitability – evidence from Kosovo
Ardi Ahmeti
; University of Prishtina, Economic Faculty “Hasan Prishtina”, Prishtina, Kosovo
Yllka Ahmeti
Skender Ahmeti
Sažetak
The study attempts to show the impact of working capital management on the
profitability of ninety-eight Kosovo-based SMEs, primarily in the manufacturing
and construction sectors. The data were obtained from the financial statements of
these companies for the years 2010 through 2020, and the assumptions were
verified using the Ordinary least square (OLS) method. To express SMEs
profitability, return on assets (ROA) is taken as a dependent variable, while to
express working capital management, independent variables are taken: the
inventory turnover period (INTP), receivables collection period (TRCP), trade
payable period (TPP), and cash conversion cycle (CCC). In addition, are taken
four control variables (size of companies, current ratio, sustainable growth, and
leverage), which are not a variable of interest in the study but could influence the
outcomes. The results reveal that SMEs increase profitability by decreasing the
cash INTP and increasing TRCP, TPP, and CCC. By analyzing the effect of
working capital management on profitability in the context of SMEs in Kosovo,
this research contributes new knowledge to the existing literature.
Ključne riječi
profitability; working capital management; SMEs; financial statements; Kosovo
Hrčak ID:
289646
URI
Datum izdavanja:
30.12.2022.
Posjeta: 1.756 *