Working Capital Management of Selected Power Sector Companies in Bangladesh: Evidence from Dhaka Stock Exchange Ltd.
Keywords:Working Capital Ratios, Power Sector Companies, Growth Rate, t-test, ANOVA
The present study is an attempt to explore the existing working capital management practices of the 3 (three) selected power sector companies listed in Dhaka Exchange Ltd. of Bangladesh. The study covered a period of 6 (six) years from 2010 to 2015. The basic sources of the collected secondary financial data are the DSE archive, published annual reports, and official websites of the selected companies. The study adopted quick ratio, cash to current liability, inventory turnover, receivable turnover, and cash conversion cycle as working capital management indicators of the sample companies. Through descriptive statistics, the study found that the working capital management practices over the study period of the selected companies are satisfactory though there is a scope to invest from the excess working capital in profitable investment opportunities. Student’s t-test and ANOVA technique showed that the differences among the working capital management practices of the sample companies over the study period are significant concerning all the selected working capital ratios except inventory turnover.
Brigham, E. F. and Houston, J. F. (2013). Fundamentals of Financial Management, 13th Edition, Cengage Learning, pp. 535 & 542.
Dhaka Stock Exchange Ltd. (2011). Sector wise Company List: Dhaka Stock Exchange Ltd. Retrieved September 08, 2018, from Dhaka Stock Exchange Ltd. Website: http://www.dsebd.org/by_industrylisting1.php
Donkor, J. (2015). Working Capital Management of SMEs: Ghana’s Version of the Story. British Journal of Economics, Management & Trade, Vol. 10, No. 3, pp. 1-12.
Gitman, L. J. and Zutter, C. J. (2012). Principles of Managerial Finance, 13th Edition, Prentice-Hall, pp. 600.
Pandey, I. M. (2010). Financial Management, 10th Edition, Vikas Publishing House PVT LTD, New Delhi, India, pp. 656.
Saravanan, R., Manivasagan, S. and Gopinathan, D. (2017). Working Capital Management of Ambuja Cements Limited through Ratio Analysis. International Journal of Multidisciplinary Research and Development, Vol. 4, Issue 1, pp. 126-130.
Singh, M. B. and Singh, N. T. (2013). Working Capital Management: An Essential Tool of Business Finance - A Case Study of National Plastic Industries Limited (NPIL). IOSR Journal of Business and Management (IOSR-JBM), Vol. 12, Issue 2, pp. 1-7.
Vijayalakshmi, V. and Srividya, M. (2015). A Study on Working Capital Management of Pharmaceutical Industry in India. Journal of Management and Science, Vol. 5, No. 3, pp. 59-80.
Viswanathan, M., Palanisamy, A. and Mahesh, R. (2016). A Comparative Study on Working Capital Management of Selected Pharmaceutical Companies in India. IRA-International Journal of Management & Social Sciences, Vol. 3, Issue 3, pp. 499-511.
Wikipedia. (2018, August 31). Electricity sector in Bangladesh. Retrieved September 08, 2018, from Wikipedia Website: https://en.wikipedia.org/wiki/Electricity_sector_in_Bangladesh
How to Cite
Asian Business Review is an Open Access journal. Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal the right of first publication with the work simultaneously licensed under a CC BY-NC 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of their work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal. We require authors to inform us of any instances of re-publication.