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Does working capital management impact profitability in xthe medical device industry? Evidence from Germany and the United States

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Detalhes bibliográficos
Resumo:This Work Project analyses the effect of working capital management (cash conversion cycle and its components) on profitability (gross profit margin) for the medical device industry, an industry not previously researched. It uses a sample of 151 observations from market leaders of the world (United States) and Europe (Germany) for the period 2016-2020. Findings indicate that managers may extend cash conversion cycle and days inventory outstanding to increase gross profit margin. German managers may also reduce days sales outstanding and expand days payable outstanding, while managers in the United States may not consider them due to insignificance.
Autores principais:Giesler, Alicia
Assunto:Cash conversion cycle Germany United States Financial statement analysis Working capital management Profitability Medical devices Gross profit margin Days inventory outstanding Days sales outstanding Days payable oOutstanding
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 analyses the effect of working capital management (cash conversion cycle and its components) on profitability (gross profit margin) for the medical device industry, an industry not previously researched. It uses a sample of 151 observations from market leaders of the world (United States) and Europe (Germany) for the period 2016-2020. Findings indicate that managers may extend cash conversion cycle and days inventory outstanding to increase gross profit margin. German managers may also reduce days sales outstanding and expand days payable outstanding, while managers in the United States may not consider them due to insignificance.