Paper Title :Impact of Working Capital Management on Profitability of Unilever Nepal Limited

Author :Binay Shrestha

Article Citation :Binay Shrestha , (2019 ) " Impact of Working Capital Management on Profitability of Unilever Nepal Limited " , International Journal of Management and Applied Science (IJMAS) , pp. 31-36, Volume-5,Issue-9

Abstract : Working capital management plays a significant role in improved profitability of company. Company can achieve optimal management of working capital by making the trade-off between profitability and liquidity. This paper analyzes the impact of working capital management on profitability of Unilever Nepal Limited. The main objective of this study is working capital management and profitability of Unilever Nepal Limited. Data analysis has been done using descriptive statistics, Pearson correlation, regression analysis, multicollinearity and F-test, SPSS 21.0 versions. The data used to analyze one (1) samples size, out of three (3) which has found to be covering period 2009-2017 of Bottlers Nepal Limited. The working capital represents the independent variable variables are Cash conversion period (CCP), Inventor Conversion period (ICP), Receivable conversion period (RCP) and dependent variables is Return on Assets (ROA). The results revealed that the impact of all four independent variables is tested together on dependent variable (ROA). From the model summary the value of R-square=0.770. It indicates that the four independent variables can explain approximately 77.0% of the proportion of variance of dependent variable. However, it is still left 23.0 % unexplained by these independent variables in this study. This indicates that there is a significant relationship between profitability and RCP, ICP and CCP. It is indicate that there is no significant relationship between profitability and PDP. Keywords- Working Capital, Management, Profitability, ROA, RCP

Type : Research paper

Published : Volume-5,Issue-9

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