A Comparison of Working Capital Components of Turkish And Indian Cement Firms

Authors : İlker SAKINÇ

Pages : 261-272

Doi:10.25229/beta.487437

View : 13 | Download : 6

Publication Date : 2018-12-30

Article Type : Research Paper

Abstract :Working capital management is the management of current assets and current liabilities. It is the main issue for financial managers because there is a close relation between working capital management and profitability. The components of working capital determine the level of profitability and risk of the firm. This study analyzes the comparison of working capital components of two different countries. For this study, Turkish and Indian Cement Industries are selected. According to list of top countries by cement production in 2013 based on USGS Mineral Program Cement Report, India is the second and Turkey is the seventh largest producer of cement in the world. This study indicates the working capital management applications of two different countries. As working capital components, Average Inventory Days, Average Payables Days, Average Net Trade Cycle, Average Receivables Collection Periods, Cash and Equivalent/ Total Assets and Working Capital/ Sales are used. Return on Assets, Return on Equity and Net Profit Margin are used for profitability indicators. The independent ttest is used to compare the means of working capital components of Turkish and Indian Cement firms for a period of 2007-2014.
Keywords : Cement Industry, Working Capital, T Test