Working capital management – Efficient tool for success of milk producers: true or false?

• Željana Aljinović Barać ^[1] ; Saša Muminović ^[2]
  1. [1] University of Split

     University of Split

     Croacia

     
  2. [2] AquafilSLO d.o.o., Slovenia.
• Localización: New medit: Mediterranean journal of economics, agriculture and environment = Revue méditerranéenne d'economie, agriculture et environment, ISSN 1594-5685, Vol. 17, Nº. 2 (junio), 2018, págs. 61-72
• Idioma: inglés
• Enlaces
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• Resumen

  • Working capital management can be considered as vital issue in financial decision-making processes in company. Consequently, it directly affects company’s success in the way of its profitability. Empirical evidence is provided on a sample of Croatian and Slovenian companies in the dairy processing industry. Univariate and multivariate analyses are used to test hypotheses about impact of working capital management components and cash conversion cycle on company’s profitability. Furthermore, differences in working capital management policies in condition of crisis and before crisis are examined. Our findings show that none of working capital management components significant affect profitability, measured by return on assets, while statistically significant relation exists between cash conversion cycle as working capital management comprehensive measure and profitability