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

Year 2018, , 261 - 272, 30.12.2018

İlker Sakınç

https://doi.org/10.25229/beta.487437

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

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