DOI: https://doi.org/10.5513/JCEA01/14.1.1155
Original scientific paper
The relationship between working capital and profitability in food industry firms in Poland
2013, 14 (1) p. 52-63
Zbigniew GOŁAŚ, Anna BIENIASZ, Dorota CZERWIŃSKA-KAYZER
Abstract
The article presents the results of the effectiveness of working capital management in the food industry in Poland. The study was conducted in the 30 branches (classes) of the food industry over the period 2005-2009, based on unpublished data of the Central Statistical Office. The effectiveness of working capital management were evaluated using a cycles of inventories, receivables, liabilities and cash conversion cycle and in relation to rates of return earned on assets. Studies have shown that in industries where these cycles are the shortest achieved the highest rate of return. The beneficial effect of shortening the cycle of working capital on profitability is also verified by using regression analysis.
Keywords
cash conversion cycle, cycle of working capital, food industry, return on assets
Download Find similar articles