The effect of working capital management on profitability: The case of Small Medium and Micro Enterprises in South Africa
| dc.contributor.author | Enow, Samuel Tabot | |
| dc.contributor.author | Brijlal, Pradeep | |
| dc.date.accessioned | 2018-06-21T12:22:58Z | |
| dc.date.available | 2018-06-21T12:22:58Z | |
| dc.date.issued | 2014 | |
| dc.description.abstract | Working capital is vital in any business, especially in SMMEs, given that most of their assets are in the form of current assets. Management of working capital is vital in order to improve profitability of the business. This study investigated the effect working capital management on profitability, using fifteen South African SMMEs, listed on the Alt-X on the JSE, from 2008-2012, using a multiple regression analysis. The results show a positive relationship between number of days account receivable, number of day’s inventory and negative relationship between number of days payable and cash convention cycle. Thus minimizing working capital and decreasing the cash conversion cycle increases profitability and hence shareholder value. | en_US |
| dc.identifier.citation | Enow, S.T. & Brijlal, P. (2014). The effect of working capital management on profitability: The case of Small Medium and Micro Enterprises in South Africa. Journal of Accounting and Management, 4(2): 7 - 15. | en_US |
| dc.identifier.issn | 2392 – 8778 | |
| dc.identifier.uri | http://hdl.handle.net/10566/3823 | |
| dc.language.iso | en | en_US |
| dc.privacy.showsubmitter | FALSE | |
| dc.publisher | Danubius Journals Platform | en_US |
| dc.rights | This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge. | |
| dc.status.ispeerreviewed | TRUE | |
| dc.subject | Working capital | en_US |
| dc.subject | Cash conversion cycle | en_US |
| dc.subject | SMMEs | en_US |
| dc.subject | Profitability | en_US |
| dc.title | The effect of working capital management on profitability: The case of Small Medium and Micro Enterprises in South Africa | en_US |
| dc.type | Article | en_US |