Cykl handlowy netto a rentowność przedsiębiorstw przemysłowych notowanych na giełdzie papierów wartościowych w Warszawie
Relationship between net trade cycle and profitability of industrial companies listed in the Warsaw stock exchange

Summary/Abstract: The purpose of this research is to investigate the effect of working capital management on firm’s profitability for the sample of firms by industry classifications. The research was conducted on the basis of quarterly financial statements of 96 companies listed in the Warsaw Stock Exchange for the period of 2007-IIIQ 2012. Net trade cycle and its components were used in this study to assess the efficiency of working capital management. The profitability of companies was measured by return on assets ratio (ROA) and return on equity (ROE). The empirical findings do not show a negative relationship between net trade cycle and profitability. Nevertheless, negative correlation of profitability with number of days accounts receivable, inventories and accounts payable can be observed.

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