Effect of working capital management on the profitability of SMEs in the clothing sector: Cuenca - Ecuador

Abstract:

This study identifies the main factors that influence business decisions about the management of working capital in the profitability of SMEs in the clothing sector in the period 2014 - 2018.The determination of factors was made through a panel analysis with fixed effects and random; the results showed an inverse incidence in the days of collection of accounts receivable, days of inventory, days of payment to suppliers and liquidity with profitability.This proves that managers can create value by reducing the current number of average days of working capital.

Año de publicación:

2019

Keywords:

• financial management
• short-term liabilities
• profitability of SMEs
• short-term assets
• working capital

Fuente:

scopus