Abstract
Purpose – The main purpose of the work is to analyse the relationship between the net working capital management strategy and selected financial results of enterprises belonging to the WIG-food index. Research method – As part of the assessment, the financial data of 12 companies belonging to the WIG-food index for the period 2008-2018 were analysed. The dependent variables were the following measures: net profit/loss (NPL), current liquidity ratio (CLR), inventory turnover ratio (ITR), general debt ratio (GDR), return on sales (ROS). To achieve the objective of the research a one-way ANOVA variance was used. Results – The research results indicate that the net working capital management strategy adopted by the companies belonging to the WIG-Food index significantly affects the achieved financial results. Originality/value – The conducted research showed that the most common differences in shaping individual financial results occur between the use of aggressive (A) and conservative (C) strategy, aggressive (A) and moderately conservative (MC) strategy, conservative (C) and moderately aggressive (MA) strategy, as well as moderately aggressive (MA) and moderately conservative (MC) strategy.
Highlights
One of the financial elements that has a significant impact on the proper functioning of the enterprise is working capital
As indicated by Gołębiowski and Tłaczała [2009, p. 193]: “Proper management of working capital will lead to an increase in operational efficiency, which will be the result of optimizing the size and structure of current assets, shaping the most favourable structure of financing sources, and the increase of profitability and competitiveness of the company.”
The obtained p-values for each group in the case of dependent variables: net profit / loss, current liquidity ratio, inventory turnover ratio and return on sales ratio are below 5%, it should be assumed that normal distribution does not occur in any of the groups
Summary
One of the financial elements that has a significant impact on the proper functioning of the enterprise is working capital. Impact of net working capital management strategy on financial ... Studying the relationship between the working capital management strategy and selected financial variables is a frequently discussed topic. It has been dealt with by, among others, Ćwięk and Jaki [2015, pp. 257-267], who studied the impact of net working capital on the value of an enterprise. 5-20] checked the relationships between different net working capital management strategies and the financial situation of listed companies in the food industry. 226] determined the impact of the adopted strategy of net working capital management on achieved profits in individual farms. The goal of Wasilewski [2006, pp. 217-221] was to identify and interpret the nature of partial financial liquidity strategies in terms of incomerisk in agricultural enterprises depending on the level of return on assets
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