أثر إدارة رأس المال العامل على سيولة و ربحية شركات صناعة الأغذية المساهمة السعودية : دراسة تطبيقية

Abstract EN

This study aimed to know the impact of working capital management on liquidity and profitability of Saudi food and beverages corporations.

Working capital management was measured by three independent variables: inventory conversion period, average collection period and average payment period.

While dependent variables, liquidity and profitability, were measured with both accrual basis (using current ratio and return on assets), and with cash basis (using cash operation flow ratio and cash return on assets).

The study sample included 12 Saudi food and beverages corporations listed in Saudi exchange market.

Study data were collected from financial statements for period of ten years (2010-2019).

To test the study hypotheses, multiple linear regression was used.

The study concluded that there is a statistically significant effect of working capital management on liquidity and profitability of Saudi food and beverages corporations measured with accrual basis (where working capital management explains 32% of changes that happened in current ratio, and 41% of changes that occur in return on assets), and there is no statistically significant effect of working capital management on liquidity and profitability of Saudi food and beverages corporations when it measured with cash basis (using cash operation flow ratio and cash return on assets).

The study recommends Saudi food and beverages corporations to effectively manage their working capital to enhance their financial performance as well as to increase their chance to survive in a competitive business environment and to achieve leadership.