The Influence of Working Capital Management on the Profitability of Manufacturing Enterprises - The Case of Croatia

The aim of this research is to examine the relationship between working capital management and the profitability of Croatian manufacturing enterprises and to provide empirical evidence on the effects of working capital management on the level of profitability of manufacturing enterprises in the Repu...

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Bibliographic Details
Published inSouth East European journal of economics and business Vol. 18; no. 2; pp. 126 - 139
Main Authors Stanić, Milan, Cita, Melita, Šulentić, Marina Stanić
Format Journal Article
LanguageEnglish
Published Sciendo 01.12.2023
Subjects
Croatian manufacturing enterprises
G32
G39
profitability
working capital management
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Summary:The aim of this research is to examine the relationship between working capital management and the profitability of Croatian manufacturing enterprises and to provide empirical evidence on the effects of working capital management on the level of profitability of manufacturing enterprises in the Republic of Croatia in the period from 2018 to 2021. The collected data were analyzed through multiple regression analysis, using a panel regression model with random effects. By analyzing panel data, the impact of receivables from customers, inventories, liabilities to suppliers, sales growth and GDP growth on the profitability of Croatian manufacturing companies was examined. The analysis of panel data examined the impact of trade receivables, inventories, payables, sales growth and GDP growth on the profitability of Croatian manufacturing enterprises. The obtained results also suggest that the variables the days sales outstanding, the days inventory outstanding and GDP growth are not statistically significant.
ISSN:2233-1999
2233-1999
DOI:10.2478/jeb-2023-0023