Hassan Nikseresht
Dr. Mohammad Taghipour
- Master’s Student Qazvin Branch, Islamic Azad University, Qazvin, Iran
- Assistant Professor North Tehran Branch, Islamic Azad University, Tehran Iran
Abstract
This study attempts to show the impact of working capital management on operating profit for manufacturing organizations in order to reach profit targets and increase sales. Additionally, it seeks to determine whether working capital management significantly affects a company’s operating net profit. Working capital management factors such as average collection period, daily balance turnover, average payment period, cash conversion cycle, and net exchange turnover of the business are considered in this study. In this research, the main independent variable “working capital management” and the dependent variable “operational net profit”; And the location of this research was the companies accepted in the Tehran Stock Exchange in the Islamic Republic of Iran in the period of the year (2010-1382). Then, by estimating the working capital management items, its effect on profitability is adapted to the relevant industry, and at the end, the relationships between the research variables are analyzed by running a regression model. The findings of the research show that working capital management has a relationship with net operating profit and also the company’s working capital management has a significant relationship with the operating net profit of manufacturing companies. The results show a strong positive correlation between net operating profit and efficient working capital management, underscoring the critical role that working capital management plays in improving the financial performance of manufacturing firms.
Keywords: Working Capital Management, Net Exchange Turnover, Average Collection Period, Inventory turnover per day, Net Operating Profit.
[This article belongs to International Journal of Trends in Humanities(ijth)]
References
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- Ghadamzan Jalali A, Habibi Machiani H, Taghipour M, Moshtaghi S. Explain the relationship between intellectual capital, organizational learning and employee performance of Parsian Bank Branches in Gilan province. Educational Administration Research Quarterly 2020; 10(2): 127–142.
- Abdi Hevelayi A, Safarian Hamedani S, Yusefi Saeed Abadi R, Taghipour M. Predicting entrepreneurial marketing through strategic planning (including case study). Educational Administration Research Quarterly 2019; 10(2): 127–142.
- Khorasani Z, Taghipour M. The location of industrial complex using combined model of fuzzy multiple criteria decision making (including case study). International Journal of Innovation Scientific Research and Review (IJISRR) 2020; 2(7): 268–280.
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- Alamdar khoolaki M, Naami A, Taghipour M. Effect of integrated marketing communication on brand value with the role of agencys reputation (including case study). Journal of Process Engineering 2019; 5(11): 30–44.
- Taghipour M, Mahboobi M, Gharagozlou H. The impact of ICT on knowledge sharing obstacles in knowledge management process (including case-study). Iranian Journal of Information Processing and Management 2016; 31(4): 1049–1074. doi: 10.35050/JIPM010.2016.003
- Safdarpour S, Pourkhosravani P, Taghipour M. The effect of government support on innovation ability (including a case study). Journal of Multidisciplinary Engineering Science and Research 2023; 2(6): 233–237.
- Taghipour M, Safdarpour S, Taherian P, et al. The impact of managerial factors on increasing the productivity of low-level employees (including case study). International Journal of Educational Foundations and Management (IJEFM) 2022; 5(2): 16–21. doi: 10.31058/j.mana.2022.52001.
| Volume | 01 |
| Issue | 01 |
| Received | June 4, 2024 |
| Accepted | June 16, 2024 |
| Published | June 28, 2024 |