Many argue that there is a trade off between profitability and liquidity. However, many studies have found that the profitability can increase with an efficient Working Capital Management. Correctly allocating cash flows to where and when it is needed increases liquidity and simultaneously increasing profitability. The purpose of this study is to develop the research on the relationship between Working Capital Management and profitability by investigating how it is affected by different company characteristics. A quantitative method was applied with philosophical stances in objectivism and positivism and deductive theory was used to approach the subject. From the theoretical framework, five hypotheses were established and statistically tested in order to answer our research question. The first hypothesis was formulated to confirm previous research, while the remaining two aimed at providing both a theoretical and practical contribution to existing knowledge. The thesis centers on the Cash Conversion Cycle, a metric of how fast a company turns purchased products into profit, with Gross Profit Margin as the measure of profitability. The data analyzed is financial information from 2012, collected from a secondary source, Business Retriever database. In order to fulfill the purpose, hypotheses were tested. The first centered in previous research of the subject, while two were introduced based on research of company characteristics. This was tested in a cross-sectional study on the Swedish wholesale industry, covering a sample of 1,485 companies. The companies were segmented by size and whether they were listed or not. By using correlation and regression analyses, the relationship between Working Capital Management and profitability is compared between the different company groups. The conclusion drawn from the study is that there is a positive relationship between the Cash Conversion Cycle and profitability, inconsistent with previous research. However, strong significant results indicated that smaller firms are returning a higher profit, regardless the level of Cash Conversion Cycle. No difference was found in the sensitivity to changes in Working Capital Management strategies. This was true also for non-listed firms, although they were performing worse than listed firms in accordance to the theory presented. The foremost conclusion from the analysis is the weak explanatory power of the Cash Conversion Cycle on Gross Profit Margin. A debate is therefore included, discussing the possibility of lurking variables influencing the results. Keywords: Working Capital Management, Cash Conversion Cycle, Profitability, size, public, private, trade credit, wholesale industry, Sweden

M.A. / The competitive landscape in the retail sector in South Africa is changing, and new models of competitiveness are needed to deal with the challenges ahead. The responses that usually occur in relation to the above statement reveal a new competitive reality, demanding that the organisation’s capabilities will enable the retail company in South Africa to better serve their customers and to differentiate them from competitors. This dissertation is about determining the status of the measurement and interpretation of intangible assets within a retail company in South Africa, and more specifically the JD Group as a furniture retailer. There are focused on the importance of the different aspects of intellectual capital i.e. human capital, structural capital and customer capital and the value that could be derived to aid the company in the retail industry. It is also intended to establish whether value can be added to investors, customers, line management, employees and the community, if the appropriate intellectual capital management tool is identified and implemented. It is viewed, both globally and in South Africa, as a core contributory factor in achieving business strategy. It was established that knowledge processes and tools could be implemented and utilized to discover intellectual capital management as a valuable resource for the retail company. The spectrum of intellectual capital management tools is investigated and four methods of measuring intellectual capital are identified in the current literature: The Market capitalization method, the return on assets method, the direct intellectual capital method and the scorecard method. The scorecard models are identified as the most appropriate method to use in a retail company in South Africa based on the following characteristics: Monitoring of performance, reporting to stakeholders and uncovering of hidden value. The retail industry in South Africa is very volatile and organizations should be geared to adapt to changes at a rapid pace. In order to achieve world-class status, it is important to understand that management and employees, together, need to champion the competitive organisation of the future. The future organisation will no longer be in business just for the sake of business, but with a clear intent to protect its most valuable asset, the future. 21st Century businesses will be in the business of the creation of future, sustainable businesses. This dissertation explores the views as to the extent to which intangible assets contribute value, how this contribution can be measured through the use of intellectual capital management tools and what the status is of such measurement in the current retail company trading in South Africa. Once the need for intellectual capital management in the retail company in South Africa is established, focus is also given to the resultant changes required in respect of specific practices and the introduction of an array of strategy focused interventions, all within the intangible assets arena. The selection of these interventions is very JD Group specific and focuses on those areas that will contribute to the strategic alignment of leadership, culture and technology within the Group’s strategy, which is quite simply but also articulately captured in the Group’s vision statement, i.e. “To become global leaders in our fields of expertise.”

Master-Arbeit Univ. St. Gallen, 2008.

<p>Den här uppsatsen syftar till att redogöra för i vilken mån Sveriges storföretag prioriterar arbetet med att optimera sitt rörelsekapital. Studien var av en explorativ sort där målet var att identifiera och uppmärksamma tidigare okända mönster och samband angående hur kapitalrationaliseringsarbetet utförs utifrån perspektiven fokus, ansvar och mätningar.Informationen som studien bygger på inhämtades genom en enkätundersökning som skickades ut till CFO:n på de 200 största svenska företagen rankade efter omsättning, exkluderat finansiella företag. Svarsfrekvens bland respondenterna blev 25 % då exakt 50 företag valde att svara på enkätutskicket. Enkäten skickades elektroniskt och besvarades genom att svara på ett webbaserat program.Resultatet från studien visade att majoriteten av Sveriges största företag prioriterar Working Capital Management. Till vilken nivå de väljer att fokusera på Working Capital Management beror på det enskilda företagets förutsättningar som till exempel vilken bransch de opererar inom.</p>

Den här uppsatsen syftar till att redogöra för i vilken mån Sveriges storföretag prioriterar arbetet med att optimera sitt rörelsekapital. Studien var av en explorativ sort där målet var att identifiera och uppmärksamma tidigare okända mönster och samband angående hur kapitalrationaliseringsarbetet utförs utifrån perspektiven fokus, ansvar och mätningar.Informationen som studien bygger på inhämtades genom en enkätundersökning som skickades ut till CFO:n på de 200 största svenska företagen rankade efter omsättning, exkluderat finansiella företag. Svarsfrekvens bland respondenterna blev 25 % då exakt 50 företag valde att svara på enkätutskicket. Enkäten skickades elektroniskt och besvarades genom att svara på ett webbaserat program.Resultatet från studien visade att majoriteten av Sveriges största företag prioriterar Working Capital Management. Till vilken nivå de väljer att fokusera på Working Capital Management beror på det enskilda företagets förutsättningar som till exempel vilken bransch de opererar inom.

Most of the construction industry's working capital is high demand, the face of the cash conversion cycle will also need to show stability of the state, to ensure smooth operation. Current construction industry is less focus on working capital , but this study suggests that working capital can be managed through the construction industry issues to explore and understand their working capital management, and thus the status of the problem to find a solution. This study proposes to financial report discusses the case Fu Tai Construction Co., Ltd of its working capital management on the effectiveness of performance, to understand the Working capital management impact on operating performance, follow-up on the case Fu Tai Construction Co., Ltd with discuss the strategies and effectiveness of analysis In this study, financial statements analysis and case study research. Financial Statement Analysis calculated for the relevant indicators, working capital management policies, including some working capital investment policy and financing policy, performance parts into return on assets, return on equity and net profit rate. Case study method and the main result of this case five Listed in working capital management policies and business performance in the indicators observed by comparing the value of the company's strengths and weaknesses of cases, followed by case discussion, strategies. Research results are as follows 1. Taiwan¡¦s Listed Construction Industry working capital management on the operational performance (1).Working capital assets policies: the fixed assets turnover rate will be affected by changes in time, but the ratio of current assets to total assets and total assets turnover rate is not; (2)Working capital financing policy: the current ratio, liquidity ratio and financing decisions liabilities to total assets does not change over time; 3. operating performance: net profit rate of the economy most affected by the return on assets and return on equity is affected to a lesser extent by the economy. 2. The case company's working capital management to improve the implementation of manner in response to the circumstances. (1).The case company policy of working capital assets, an indicator of quality of listed companies, little difference in the policy part of the working capital assets less the same general construction industry, there is no immediate urgency for improvement;(2) working capital financing policy of the indicators in the current ratio and financing decision-making ratio is less than the average listed company, with considerable room for improvement; (3).operating performance indicators are showing a lower level (0.03 to 0.12), representing the need to pay attention to the management of operational activities, to increase management efficiency in order to avoid unnecessary losses.

Working capital management refers to the financing, investment and control of net current assets within policy guidelines. It seems to have been relatively overlooked, although it is realized that a high proportion of business failures are due to poor decisions concerning the working capital of the firms. This case study is devoted to analyze the working capital practices of Keren Metal, wood and Cement Works, a manufacturing firm operating under joint venture in Eritrea. The study covers areas of working capital management, which encompasses, the working capital investment, working capital finance and working capital policies of the firm. To this end, relevant literature is reviewed and compared to the actual practices of the firm. Based on the gap identified from the comparison of the theory and the application, recommendations has been forwarded as how the working capital should be practiced, so as create value to the partners of the firm. / Thesis (MBA)-University of Kwazulu-Natal, 2004.

This report aims primarily at analyzing working capital management in non-profit organizations. Since most non-profit organizations experience financial difficulty in the short-term, an evaluation is conducted with regard to the components that make up working capital. Five organizations were analyzed, in order to identify if these problems are uniform, cyclical or unrelated occurrences. To prevent inconsistencies the organizations that were analyzed operate in similar environments and provide similar services. This study was prompted by the ever-changing economic conditions in the country and the effect that they have on non-profit organizations' survival. Based on this, a short-term financial perspective was undertaken and the effects of working capital management were analyzed. This was further elaborated by the fact that non-profit organizations are finding it difficult to bridge the discrepancies between revenue and expenditure, which was substantiated by Braswel et. al, (1984). A case study methodology approach was adopted which identified financial theory as a base; thereafter, an analysis was conducted of the organizations' financial statements. Once this was completed, a survey was undertaken with all financial decision-makers. Thereafter, an interview was conducted with financial managers to establish the effective management of working capital. Based on these methods, conclusions were drawn and recommendations made, so that corrective action could be taken to eliminate or reduce the recurrence of these problems. The aim of this study is to provide non-profit organizations with greater understanding of financial planning models and techniques, which would aid them in their management of working capital. / Thesis (MBA)-University of KwaZulu-Natal, 2004.

This study ascertains financing behavior and Capital Structure determinants of a leading Jamaican corporation, Grace Kennedy Limited (GKL) in order to establish the extent to which the company follows the Static Trade-off theory (STOT), in which an optimal capital structure of the firm exists and can be derived by balancing the benefits of debt against costs associated with debt i.e. Bankruptcy costs and Agency costs and costs of underinvestment. STOT is compared with The Pecking Order theory (POT) which firm has no specific target debt ratio and capital structure is driven by the need of funds. The existence of Information Asymmetry, Signaling and relative costs associated with alternative methods and sources of funding lead the firm to have a preferred hierarchy for financing decision with the Internal Retained Earnings being preferred, followed by Debt and then Equity. GKL's financing behavior arguably follows the STOT, but more clear evidence supports the POT. The Firm has given preference toward the following funding sources and Corporate Principles, Financial Flexibility, Transactions Costs, Bankruptcy Costs, Credit Rating, Market Considerations and Timing are all seen as important fundamental factors (Determinants) in deciding about Capital Structure. Some concern is also given to Information about Asymmetry problems at international level. However, Agency Costs, i.e. Asset Substitutions, Wealth Transfers, and Over-investment are not found to be issues of major concern, as the Firm has good governance. Tax Shield benefits have no effect on the financial manager's decisions. Also an Industry Norm is not found to be important for GKL's Capital Structure decisions. The amount of debt in the Firm's capital structure is maintained at a low level according to a conservative policy. It is also driven by corporate strategic planning, and by the availability of profitable investments taking advantage of each funding source. / Thesis (MBA)-University of Natal, Durban, 2003.

The human resource department in many organisations is at a crossroad of relevance, constantly being faced with the challenge to prove that it can add value towards the objectives of the business. The Human Resource (HR) department is also faced with a reality that, if the department does not add value to the organisation, it will be farmed out to independent contractors, who can deliver the HR functions at a more efficient and cost effective way. However, organisations have a great opportunity to achieve excellence and competitive advantage through the utilisation of the organisation‟s human resources. Many scholars and authors argued that organisations can achieve the most out of its human resources if the HR department is a Strategic Business Partner (SBP) in these organisations. A thorough literature review has led to the discovery that, despite the appraisal of the Strategic Business Partners (SBP) approach to the management of human resources, little progress has been made with the reinvention of the HR departments from support function towards being a SBP (Lawler & Morhman, 2003; Keith, 2007). The slow progress in the transformation of the HR department was attributed to a wide range of factors including the lack of competencies to take up Strategic Business Partnership roles, lack of management support, and incongruent organisational cultures (Keith, 2007; Sanders & Frenkel, 2009; Ulrich & Brockbank, 2005). Semi-structured interviews were conducted with HR professionals, Managing Directors and other Directors, who sit on a strategic table, to identify the challenges and opportunities the HR department faced as a SBP in organisations. A self-administered questionnaire, based on an existing questionnaire (Ulrich & Cornell (1997) HR role assessment survey) was used to gather the perception of employees regarding the roles the HR departments play in organisations. In this study organisational culture was identified as having a huge impact towards the implementation of HR departments as SBPs. The study also identified the competencies needed for the effective execution of SBP roles, the challenges HR departments may face in the process as well as the important roles the HR department should be devoting most of its time and resources to.