EFFECT OF WORKING CAPITAL MANAGEMENT ON FIRM PROFITABILITY OF LISTED ENTERPRISES IN VIETNAM

Abstract

Improving firm profitability is the vital goal of an enterprise. Therefore,
studying about the factors affecting firm profitability is a necessary requirement
for businesses. Using a group of working capital management indicators to
measure the company's asset management effectiveness, assessing the
company's ability to use assets to generate profits, thereby, providing an
operational orientation to improve firm profitability of enterprises. The purpose
of the research is to establish a relationship between the practical goals of working
capital management and the firm performance of listed enterprises in Vietnam.
The article uses a quantitative research method to analyze the effects of
receivables turnover, inventory turnover, payables turnover, current assets
turnover, asset turnover, company size, and financial leverage that's affecting
firm profitability, by that, drawing appropriate conclusions and recommendations
to improve business results of the enterprise.