Open AccessStrategies to Improve Financial Profitability in the Banking Industry
Author(s) -
khalid Makki Said,
Yvonne Doll
Publication year - 2021
Publication title -
international journal of applied management and technology
Language(s) - English
Resource type - Journals
ISSN - 1544-4740
DOI - 10.5590/ijamt.2021.20.1.03
Subject(s) - profitability index , working capital , business , finance , market liquidity , risk adjusted return on capital , capital adequacy ratio , capital (architecture) , cash , financial capital , financial system , economics , capital formation , human capital , market economy , archaeology , history , incentive
More than 50% of business failures in the United States are because of leaders’ inability to manage working capital. This qualitative, multiple case study is grounded in the cash conversion cycle theory. The purpose is to explore the strategies bank leaders have used to improve working capital management in three banks in Kentucky to increase bank profitability and improve financial stability. Data were collected using semistructured interviews with three different banking leaders who have implemented successful working capital strategies. Using methodological triangulation and Yin’s five-step data analysis resulted: (a) risk and liquidity, (b) top-down approach, and (c) investment approach. The findings from this study include strategies for improving the use of working capital, leading to business profitability and increases in employment opportunities.