Open AccessWorking Capital Management and Return on Assets of Manufacturing Industry of Peru
Author(s) -
Wagner Vicente-Ramos,
Marianela Roxana Ames Porras,
Roberson Meza Quispe,
Miguel Angel Rojas Zacarias
Publication year - 2020
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v11n2p382
Subject(s) - working capital , profitability index , stock exchange , business , leverage (statistics) , return on assets , finance , sample (material) , current liability , payment , weighted average return on assets , return on capital employed , economics , profit (economics) , financial capital , capital formation , microeconomics , computer science , chemistry , chromatography , machine learning
This article contributes to the increase in knowledge and existing theory about the administration of working capital and its relation to profitability. Using a sample of 23 companies listed on the Lima stock exchange during the period 2009-2018. There is a negative relationship between profitability (ROA) and the average inventory period (PPI), in the same way a negative relationship between profitability and the average collection period (PPC), finally a positive relationship between profitability and the period average payment (PPP). It is concluded that a company of the industrial sector in Peru, manages to be more efficient, effective and competitive insofar as it improves the management of working capital, which is achieved if it achieves effective management of financial resources, an equitable policy of Customer credit, proper inventory management and proper management of supplier leverage and short term.