Effect of Working Capital Management on the Financial Performance of Manufacturing Firms in Sultanate of Oman

Authors

  • Ramesh Gengatharan Hamad Saeed Suliman AL-Habsi Tammam Salam Hamood AL-Sharji 1Department of Business Studies, Ibra College of Technology, Sultanate of Oman. 2Bachelor degree students in Accounting & Finance, Ibra College of Technology, Sultanate of Oman.

DOI:

https://doi.org/10.15520/ijbm.vol6.iss3.68.pp38-42

Abstract

Managing working capital in a manufacturing organization is an important aspect. It measures the company ability to pay off short-term liabilities. The management of working capital effects on the primary objective (earning profit) of the organization. This motivated the researchers to study the “effect of Working Capital Management on the Financial Performance of Manufacturing Firms in Sultanate of Omanâ€. The study period is 10 years and data have been collected from 19 manufacturing companies listed in MSM. Mean, standard deviation, correlation and regression are used in this research to analyse the effect of working capital in the profitability among the sample firms. The study concludes that the debtor management, inventory management, creditor management and cash conversion cycle negatively effects on the financial performance of listed manufacturing firms in Sultanate of Oman over the 10 years period.

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Published

2017-06-21

Issue

Vol. 6 No. 03 (2017)

Section

Articles

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“I certify that I have participated sufficiently in the conception and design of this work and the analysis of the data (wherever applicable), as well as the writing of the manuscript, to take public responsibility for it. I believe the manuscript represents valid work. I have reviewed the final version of the manuscript and approve it for publication. Neither has the manuscript nor one with substantially similar content under my authorship been published nor is being considered for publication elsewhere, except as described in an attachment. Furthermore I attest that I shall produce the data upon which the manuscript is based for examination by the editors or their assignees, if requested.”

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