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Working capital management in the food industry: a comparison of cash conversion cycles along the value chain and their impact on profitability

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Detalhes bibliográficos
Resumo:This Work Project aims to identify diversity in working capital management of companies in the food value chain. It also investigates how working capital management affects profitability of different value chain stages. Based on a sample of 194 companies of the subindustries Agricultural Products, Packaged Foods & Meats, and Food Retail, this study found different working capital management patterns across the value chain. Furthermore, shortening cash conversion cycle does not, as a rule, improve profitability. However, working capital management levers can be used to increase profitability, depending on the value chain stage in which a company operates.
Autores principais:Poeschel, Felix Maximilian Leopold
Assunto:Cash conversion cycle Financial statement analysis Working capital management Profitability Food retail Return on assets Food industry Value chain Packaged foods & goods Agricultural products
Ano:2022
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:This Work Project aims to identify diversity in working capital management of companies in the food value chain. It also investigates how working capital management affects profitability of different value chain stages. Based on a sample of 194 companies of the subindustries Agricultural Products, Packaged Foods & Meats, and Food Retail, this study found different working capital management patterns across the value chain. Furthermore, shortening cash conversion cycle does not, as a rule, improve profitability. However, working capital management levers can be used to increase profitability, depending on the value chain stage in which a company operates.