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| An Empirical Analysis of the Impact of Working Capital Management on the Performance of Companies in the Food Retail Industry
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Yousef Alhusaini
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Abstract:
Working capital management is among the most crucial decisions for companies. The application of optimum working capital management tends to significantly boost the value of an organisation. Therefore, the study is based on an assessment of the working capital management as key indicator on the examination on the performance of a company. A critical analysis on this variable is provided to determine the relationship it has to the performance of a food retail company in terms of profitability. Moreover, the study also comprises of an assessment on the effects of WCM to improving leverage attributes of the companies. This analysis has utilised data sets from a sample of five companies is meant to provide scholarly evidences about the critical nature of the topic. These food retail organisations include Tesco, Sainsbury, Morrisons, and Mencer & Spencer. The outcome derived from the analysis is that there exists and positive and statistically meaningful relationship between working capital and the net profit which is a major determinant on the type of performance existing in a company.
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