05 Inventory Turnover Ratio …………………………………….. 07 Debt Ratio ……………………………………………….……. 08 Net Profit Margin Ratio …………………………………....…. 10 Return on Investment (ROI) ……………………………….…. 11 Return on Equity (ROE) …………………………………….... 12 Price-to-Earnings Ratio (P/E) ……………………………….... 13 Analysis of Working Capital Management …………………………... 14 Common-size Income Statements …………………………..... 15 Inventory Conversion Period
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Research in Business ISSN 2046-7141 Vol.3, Issue.10, (pp.30- 36) | 2015 WORKING CAPITAL MANAGEMENT AND PROFITABILITY IN SUGAR INDUSTRY OF PAKISTAN Muhammad Ehsan Javaid Leghari PhD Management Sciences COMSATS Institute of Information Technology Islamabad, Pakistan Email:muhammadehsanjavaid@yahoo.com ABSTRACT Working capital management is necessary for profitability. In this study working capital management of sugar industry and its impact on profitability is checked from 2002 to 2012. Total observations
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300 Working Capital Management And Profitability – Case Of Pakistani Firms Abdul Raheman* and Mohamed Nasr ** Working Capital Management has its effect on liquidity as well on profitability of the firm. In this research, we have selected a sample of 94 Pakistani firms listed on Karachi Stock Exchange for a period of 6 years from 1999 – 2004, we have studied the effect of different variables of working capital management including the Average collection period, Inventory turnover in days, Average
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auto mechanics, Dan Block and Ed Spriggs. Originally located in Block’s garage, the firm showed slow but steady growth for 7 years before it relocated to an old, abandoned meat-packing warehouse on Chicago’s South Side. With increased space for inventory storage, the company was able to begin offering an expanded line of auto parts. This increased selection, combined with the trend toward longer car ownership, led to an explosive growth of the business. Fifteen years later, Parts Emporium was the
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Submitted To: Submitted By: Prof. R. Srinivasan Gulshan Sharma FPG1113/021 Impact of working capital on the profitability of the firm | Table of Content Topic.............................................................................................................................Page No. Acknowledgement........................................................................................................ 3 Executive
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This introduction provides an overview of the CPIM program, this course, and further preparation for the certification examinations. The CPIM certification is the recognized standard for individual assessment in the field of production and inventory management. The certification is designed to validate the candidate’s in-depth knowledge of a variety of subjects specific to the field. APICS has ensured that CPIM exams are consistently reliable and that the highest professional standards are used in
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AFN=($1000/$2000)$500-($100/$2000)$500-0.0252($2500)(($50.4-$15.12)/$50.04) AFN=0.5*$500-0.05*$500-0.0252($2500)(0.7) AFN=$250-$25-$44.1=$180.9 Answer: NWC will need $180.9 million. Section B Consultations with several key managers within NWC, including production, inventory, and receivable managers, have yielded some very useful information. (1) NWC’s high DSO is largely due to one significant customer who battled through some hardships the past 2 years but who appears to be financially healthy again and is generating
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Transaction Authorization PURCHASES SUBSYSTEM. The inventory control function continually monitors inventory levels. As inventory levels drop to their predetermined reorder points, inventory control formally authorizes replenishment with a purchase requisition. Formalizing the authorization process promotes efficient inventory management and ensures the legitimacy of purchases transactions. Without this step, purchasing agents could purchase inventories at their own discretion, being in a position both
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which is a great business strategy. They were able to provide to their customer the marginal price which made their product more attractive. Furthermore, most of their sales were on credit terms. BBC was very conservative with their working capital management. Its assets were ten times that of their liabilities. They repaid their creditors quickly before the credit period ended, but on the other token they were lenient with their customer’s credit terms. The excess credit to their customers caused excessive
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none of the above 2. Following a pure level strategy, production in 2007 – IV will be ______ units, which will result in ______ units of ending inventory at the end of that quarter. a. 340, 60 b. 320, 20 c. 340, zero d. 320, zero 3. In addition to the cost of assembling the kits, the sum of inventory holding costs and backorder costs associated with a pure level strategy would be ______ a. Zero b. $8,800 c. $4,800
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