Capital Turnover Rate Research Articles

Establishing Efficient Conditions for Agriculture Development

The purpose of this paper is to adapt theoretical knowledge to derive practical recommendations on developing agriculture with a view to finding solutions to the problem of building up economic potential. The paper substantiates the relevance of further development of agriculture, emphasising the role of the industry in sustaining stable operation and development of the agro-industrial sector in general. The authors have shown that the identified conditions of efficient agricultural reproduction of the expanded type are not yet fully established. The conducted analysis of the state of Russian agriculture has shown that the industry has built sufficient capacity not just to supply its own needs from inner sources, but also has stable positions in the global market in grain and sunflower oil production; national requirements are fully met in egg products, pork and poultry meat, white sugar; a deficit in commodity supply, nationally, exists in fruit, berries, grape, vegetables, beef, milk. No expanded reproduction is yet attained in horticulture, vegetable farming, cattle farming. The reason for this condition is the high capital intensity and low capital turnover rate in production, on the one hand, and insufficient infrastructure profile, on the other hand. Moreover, the reserves for production growth lie in the active engagement of minor agricultural producers and private households to the mass market. Alongside the issues of resource supply, systematic state support of the agricultural sector should also address measures to ensure and regulate guaranteed marketing of agricultural products.

NET İŞLETME SERMAYESİNİN LİKİDİTEYE ETKİSİ: BIST 30 ŞİRKETLERİNDE BİR UYGULAMA

Companies are required to have sufficient liquidity to maintain their daily activities. Therefore, the relationship between working capital and liquidity needs to be examined. In this study, the effect of net working capital efficiency on liquidity is investigated. In the application, 2014-2018 period financial statements data of the companies in the BIST 30 index were used. In the model, a panel data analysis was performed with the variables that define the net working capital turnover ratio, current ratio, acid test ratio, cash ratio, net working capital, revenues and net working capital direction ( positively or negatively). There is no significant relationship between current ratio and acid test ratio and net working capital turnover ratio. Net working capital turnover rate, net working capital and net working capital are negatively in the direction of the variables expressing the direction; It has been determined that it affects the cash ratio and revenues variables positively.

Analysis of Financial Performance in Dairy Enterprises; The Case Study of Konya, Turkey

Sustainability and development of the dairy enterprises are dependent on competitiveness. Determination of the performance of the enterprises requires measurement and analyses of the financial performance of the enterprises. The ability of dairy enterprises to continue and grow is dependent on competitiveness. It requires that the financial performance of the farm enterprises be measured and analysed in order for the enterprises to be able to detect the competition power in a healthy manner. The aim of the study is to analyse the financial performance of the dairy enterprises in Konya province by determining the capital structure. Çumra, Karapınar and Ereğli districts constituted 15% of the number of bovine animals, were selected by using sampling method. The number of dairy cattle in these enterprises constituted the main frame of the population the primary data collected from 125 dairy farm enterprises with questionnaire technique through stratified sampling method with 95% confidence interval and error margin of 5%. The capital structure of the enterprises surveyed in the research area was classified according to their functions and the average active capital of the enterprises was calculated as 845,330.85$. 67.87% of the active capital is composed of land capital, 31.70% is composed of fixed enterprises capital and 0.43% is variable working capital. The economic profitability level (EP) was determined as 6.90% and the financial profitability level (FP) indicated the success of the enterprise was calculated as 7.06%. The capital turnover rate, an important indicator in the success and comparison of the enterprises, is 28.22%. As a result, their development and competitiveness are slow, because they do not use enough business and investment capital.

ANALISIS PENGARUH PERPUTARAN MODAL KERJA, STRUKTUR MODAL DAN SKALA PERUSAHAAN TERHADAP PROFITABILITAS PADA PERUSAHAAN OTOMOTIF DI BURSA EFEK INDONESIA

This study aimed to analyze the effect of the rate of turnover of working capital, capital structure and scale of the company to profitability in automotive companies. The population of this research are automotive companies listed in Indonesia Stock Exchange in 2014-2016 amounted to 17 companies. The sampling method used is purposive sampling and acquired 12 companies in the sample. The method of analysis which is used is multiple regression analysis using SPSS software. Based on the results of the partial or t test, variable working capital turnover rate had no significant effect on profitability, capital structure variable has no significant effect on profitability as well as the scale of the company has no significant effect on profitability. Thus the three independent variable has no significant effect on the dependent variable.

Theoretical and Empirical Basis for the Integration of the Leontief and Sraffa Systems

This paper shows that the price system corresponding to Leontief’s dynamic open model possesses all the properties of the regular Sraffa system. Both systems can accommodate fixed capital and problems associated with its joint utilization, transferability between industries and changing efficiencies over its lifetime can be overcome. Some empirical observations on the general relation between the rate of profit earned on invested capital, the on-cost profit markup rate and the rate of capital turnover have been presented. These form the basis for a new formulation of the dynamic price and output systems that facilitate their empirical application. The new formulation automatically incorporates imperfectly competitive industries.

Empirical Assessment of Factors Influencing Corporate Performance of China’s Independent Brand Automobile Companies

China’s independent brand automobile is an infant industry in China. It is characterized by a small share in the world market and low price with unreliable quality. However, continuous expansion of China’s population, an increase in the number of high-end consumers, coupled with rapid economic development, serve altogether to promise China’s independent brand automobile companies a bright future. In October 2014, China introduced a favorable policy that low-exhaust models (1.6L and below) pay half of previous purchase tax. Afterwards, China’s independent brand automobile industry experienced a booming period. Nevertheless, the gradual degradation of policy dividend, changes in market environment, and consumer awareness, have compelled China’s independent brand automobile companies to adjust their original business model and to innovate accordingly so as to meet new market demand.This paper empirically investigates factors influencing corporate performance of China’s independent brand automobile companies. It utilizes data of all 18 listed China’s independent brand automobile companies between 2012 and 2016. Factors assessed include capital scale, enterprise growth rate, capital turnover rate, enterprise solvency, research and development expenditure input intensity, sales channel, human resources etc. Empirical results find that the scale of the company, the growth rate of total assets, the growth rate of net profit, the profit margin of core business, the operating profit margin, the current ratio, the quick ratio, the intensity of research and development investment, and the ratio of highly educated employees, are the key factors which enhance corporate performance of China’s independent brand automobile companies.

ОСНОВНІ ОЗНАКИ ТА ТЕНДЕНЦІЇ РОЗВИТКУ РИНКУ ПОСЛУГ

The article discusses approaches to the interpretation of the concept of a service, its specific differences from a physical product and the main features as an object of purchase and sale in the relevant market. Based on the analysis and systematization of existing scientific views, the main features of the service market and the features of the interaction of supply and demand in the service sector are revealed. The practice of functioning of the service market demonstrates the high dynamics of market processes, a pronounced segmentation of demand for services, a high degree of differentiation of services, a high rate of capital turnover and the important role of non-price barriers to entry into the market. The essence and value of the customer's customer loyalty for successful commercial activities and increasing the competitiveness of the manufacturer-supplier of the service has been investigated. Loyalty becomes an indicator of business performance and its ability to innovate. A customer-oriented business philosophy, where a wide range of factors of influence on the formation of customer loyalty is taken into account and used, will allow the company to count on long-term relationships with the consumer and will attract new customers through his positive experience. The possibilities and features of the application of competitive strategies by firms in the field of service activities were analyzed. The main trends in the development of the services market in the current stage, namely the processes of its digitalization, have been investigated. The buyer today is interested not only in price and quality, but also in good service. If a company meets customer service demand through the introduction of chat bots, self- service terminals, mobile applications, etc., then this contributes to the formation of a positive customer experience, which ultimately increases sales. The features and advantages of using information technologies both in business activities and in the implementation of consumer choice have been determined.

Performance evaluation of logistics firms based on DEA model

Logistics plays an increasingly more important role in the whole national economy. However, China's logistics industry is still in its infancy, and its operation efficiency desperately needs to improve. This paper applies data envelopment analysis (DEA) to evaluate the operation efficiency of two categories, and a total number of 20 representative listed logistics firms in China. DEA CCR, BCC and cross-efficiency model are used to discover the level and reasons of efficiency and inefficiency of sample decision-making units (DMUs). Net permanent assets, total assets, number of employees and main business costs are selected as input measures; net profit, capital turnover rate and main business income are used as output measures. The results show that about half of sample logistics firms are efficient DMUs, indicating the overall developing situation of logistics industry in China is good; the efficiency of logistics firms is related to regional economy. Related suggestions for efficiency improvement of Chinese logistics industry are also presented.

A Theoretical Model for Dividend Policy

Interactive determinations, featured in the corporation’s investing, financing and operating activities, explicitly lead firm’s decision ambiguity of payout policy as the result of benefit pursuit and competing among investors, agencies, and firm’s decision making. The study initiates and develops theoretical decision model through consolidating the segmented optimal decisions of, shareholders, agencies, and firms, recognizing the capital structure, tax effects, cash flows allocation effects, and executives’ utility optimality. It results the constructive implications for the implementation of payout policy, which consist of, equity capital turnover rate, taxes, cost of capital, and sustainable growth rate, and so on.

A model for linking shop floor improvements to manufacturing cost and profitability

Manufacturing units in the so called high-cost countries are struggling under fierce competition on the global market. In order to survive, the factory needs to generate profit to its owners. Profitability can be reached in many different ways apart from only lowering the employees’ salaries. It can be improved through increased profit margins (sales in relation to costs) or with an increased capital turnover rate. Finding ways to free capacity and to improve flexibility in order to increase sales is often more interesting to the manufacturing companies than cutting the direct salary costs. A model for analysing profitability of a manufacturing unit is proposed. It is found on a production system analysis and combines in-depth production engineering analysis with economical accounting analysis of the factory. The manual work tasks are of special interest and the productivity of selected bottleneck work areas are analysed thoroughly. The model is intended for use by two industrial analysts during a one-week study. Simulation of different improvement scenarios is carried out and presented to the factory management at the end of the profitability study. A software implementation is required in order to generate the model, collect data and make simulation within the intended time. The implementation is made in spread sheet software using Visual Basic to program interfaces and automatic functions. The primary area of application is the electronics industry in Sweden where the model is used in a research project to strengthen the competitiveness of that industry.

Economcis of cattle fattening with crop residues in Northern Guinea Savannah ecological zone of Nigeria

This study was conducted to investigate the economics of Cattle fattening with crop residues in Northern Guinea Savannah Ecological Zone of Nigeria, Data were collected from 100 respondents between January to December, 1999 using simple random sampling technique. Interview method was employed. The data were analysed using descriptive statistics, farm budgeting technique and regression analysis. The results showed that the net income was N6642 and the rate of Capital turnover was 1.27. Multiple regression Analysis showed a coefficient of multiple determination of 89.3% (P<0.05). Reduction in the cost of feeds was suggested for enhanced profit maximization.   Key words: Cattle, fattening, crop residues, profit

Differential Environmental Regulation: Effects on Electric Utility Capital Turnover and Emissions

This paper tests the hypothesis that differential regulations reduced the rate of capital turnover in the electric utility industry, resulting in increased emissions of sulfur dioxide. Based on a sample of forty-four privately owned electric utilities operating over the period 1969-83, the authors' results indicate that (1) regulation increased the age of capital by an average of 3.29 years (24.6 percent); (2) increases in the age of capital have no statistically significant impact on emissions; and (3) in the absence of regulation, emissions would have increased by 3.79 tons per million kWhs (34.6 percent). Copyright 1993 by MIT Press.

Technical and Organizational Progress and the Turnover of Capital

First, this paper presents three different points of view on the long-run impact of technical and organizational progress on the time structure of production and circulation and thereby on the rate of capital turnover. Two of these approaches are Marxian (Hilferding and Andreff), one is Neo-Austrian (v. Weizsicker) but can easily be translated into a Marxian framework. Moreover, these expectations are confronted with empirical evidence on the rate of capital turnover in the U.S. manufacturing sector. Taking account of inflation and the effect of the business cycle, the results of the empirical analysis are not straightforward but suggest diverging development paths for the 21 industries under study. Still, during the '70s U.S. manufacturing companies seem to have in general succeeded in accelerating capital turnover by improving the time structure of production and circulation.

Capital Turnover and Marketable Pollution Rights

THE competitive response of firms to the constraints imposed on them by a regulation often mitigates or even negates the effect intended by government. The predicted response of profit-maximizing agents is sometimes obvious in advance, and only the magnitude is left open to question. This seems to be true in the case of environmental quality regulation where rules against trading pollution permits create a clear incentive to operate facilities longer, which, in turn, has a potentially negative effect on environmental quality. This article measures the responsiveness of firms to this incentive and the resulting effect on air pollution rates. The development of environmental quality regulation, especially since the 1970 Clean Air Act (CAA), has moved increasingly in the direction of market oriented approaches to ambient improvement. Even though significant constraints on trading still exist, the framework for a market in pollution permits is currently in place. Critics have argued that trade in emissions represents a setback in the timetable of environmental improvement that was originally embodied in the 1970 law, and to some extent these conjectures have been reflected in public policy. This article addresses the empirical question of whether restrictions on emissions trading enhance or retard the rate of ambient air quality improvement. The central issue involves the rate of capital turnover. In order for trading restrictions to enhance environmental quality, capital must turn over rapidly. As old capital turns over, its replacement is subject to more

Capital rationalization

During recent years tied up capital has been given a lot of attention. The reason is partly the increasing cost of capital but primarily the fact that many companies have a low capital turnover rate. A new concept, “capital rationalization”, has been created. The concept stresses the ambition to give priority to activities leading to increases in the capital turnover rate of the company. This means that large efforts are made with the purpose of reducing capital tied up in material at different processing levels. As analysis and explanation tools the DuPont chart and the socalled profit diagram are frequently used. This paper contains a theoretical interpretation of these tools. Capital rationalization as a concept and management tool is also discussed.

Suggestions as to the Laws of Capital Return Under Conditions of Free Competition

In connection with the special interest that attaches, at the present time, to studies of costs of production and distribution, it is possible to suggest a complementary line of approach through the study of the actual rates of return on capital (including borrowed money) invested in productive and distributive enterprises. There is reason to believe that, in respect to such enterprises, operating under conditions of free competition, there are rather definite laws which govern the normal, or long period, distribution of the establishments and the in? vested capital by rates of capital return. The laws governing this distribution may be stated, tentatively, as follows: 1. Rates of capital return under conditions of free competition are determined not by the kind of production or distribution, but by certain constants, such as the ratio of invested capital to gross sales or output, the ratio of gross sales or output to the value added by manufacture or distribution, the relation of the business or industrial activ? ity to the normal business cycle, i. e., whether this activity fluctuates more widely or less widely than general business activity, etc. 2. In each particular line of production or distribution, prices are determined by the costs of operation of a group of establishments which earn, in the long run, only the rate of capital return reasonably neces? sary to maintain them. 3. In relation to this price-determining group of establishments, the entire investment in the industry, or distributive process, is arranged by rates of capital return in the form of a heavily skewed frequency curve, there being few establishments earning appreciably less than those of the price-determining group, but a very considerable number earning higher rates of return. 4. In industries or distributive processes where the rate of capital turn-over is high, where the ratio of value added by manufacture or distribution to the total value of output or sales is low, or where business activity fluctuates more widely than general business activity, the spread of the frequency curve is relatively great and the ratio of the average rate of capital return to the rate of capital return in the pricedetermining group is high. The preceding suggestions as to the laws which govern capital re-