Business, Management and Accounting
3 years ago

Extending trade credit boosts profits for Kosovo manufacturing companies

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Management
Working capital management and profitability of manufacturing companies in Kosovo
Amant Fejzullahu, Florije Govori

Paper Summary

The article shows how managing working capital affects the profits of manufacturing companies in Kosovo. By analyzing data from 36 companies over 2012-2013, the researchers found that extending the time it takes to convert cash, receive payments, and pay suppliers can increase profits. However, delaying payments to suppliers can decrease profits. Keeping inventory longer can also lead to higher profits. Overall, companies in Kosovo can stay competitive by managing their working capital effectively.

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