Izvorni znanstveni članak
https://doi.org/10.18045/zbefri.2026.1.8
Effects of Working Capital Management on the Profitability of Pharmaceutical Wholesale Companies in Croatia
Darija Prša
; University of Rijeka, Faculty of Economics and Business
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* Dopisni autor.
Sažetak
The main objective of this paper is to examine the relationship between working capital management and the profitability of companies engaged in the wholesale distribution of pharmaceutical products to pharmacies, hospitals, and other healthcare institutions in Croatia. This objective arises from the research question of whether working capital management has the same impact on the profitability of micro and small companies as it does on medium and large companies. Based on a sample of 157 companies observed over the period from 2015 to 2024, a panel data analysis was conducted to examine the impact, intensity, and direction of key working capital management factors—days of receivables collection (DCR), days of inventory stocked (DIS), and days of payment to suppliers (DPS)—on return on assets (ROA). The results indicate that DCR, DIS, and DPS have statistically significant negative effects on ROA, and that the COVID-19 pandemic and inflation further reduced ROA. Importantly, company size significantly moderates the effect of DPS: the effect remains negative for micro and small companies but becomes positive for medium and large companies. The findings suggest that managers should pay particular attention to working capital management, especially supplier payment policies, and adapt these practices to firm size in order to improve profitability and maintain financial stability during periods of economic uncertainty.
Ključne riječi
wholesale trade; pharmaceutical products; working capital management; profitability; COVID-19
Hrčak ID:
348630
URI
Datum izdavanja:
30.6.2026.
Posjeta: 0 *