Business, Management and Accounting
8 years ago

Reducing Inventory Turnover Boosts Profitability for Iranian Companies Listed on TSE

Procedia - Social and Behavioral Sciences
Working Capital Management and Corporate Performance: Evidence from Iranian Companies
Taghizadeh Khanqah Vahid, Ghanavati Elham, Akbari khosroshahi Mohsen, Ebrati Mohammadreza

Paper Summary

Related papers

Business, Management and Accounting
5 years ago

Optimizing working capital boosts profits for Vietnamese firms, study finds.

Working Capital
Metal Composites
Financial Management
Business, Management and Accounting
6 years ago

Inventory turnover negatively impacts firm profitability in Pakistan's textile industry.

Working Capital
1 view
Business, Management and Accounting
8 years ago

Optimizing working capital boosts financial performance for water processing firms in Somalia.

Working Capital
Corporate Governance
Financial Management

The study looked at how managing a company's working capital affects its performance in the Tehran Stock Exchange. By analyzing data from 50 companies between 2006 and 2009, researchers found that shorter collection periods, faster inventory turnover, and quicker payment periods were linked to higher profitability. However, the cash conversion cycle didn't show a significant impact on company performance. This means that companies can improve their profitability by managing their working capital more efficiently.