Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh

Rejaul Karim; Md. Abdullah Al-Mamun; Md. Tota Miah

doi:doi:10.11648/j.ijefm.20170502.16

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Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh

Rejaul Karim, Md. Abdullah Al-Mamun, Md. Tota Miah

Published in International Journal of Economics, Finance and Management Sciences (Volume 5, Issue 2)

Received: 19 January 2017 Accepted: 10 February 2017 Published: 9 March 2017

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Abstract

Pharmaceutical is an important adjunct of industrialization in Bangladesh. This paper examines the effects of working capital management efficiency on the profitability of the two leading pharmaceuticals companies of Bangladesh - Square Pharmaceuticals Limited (SPL) and Beximco Pharmaceuticals Limited (BPL) and to make a comparison of financial efficiency between these two firms. The secondary data for a period of ten years (2006-2015) have been analyzed by using correlation, t-test, and different profitability, liquidity and solvency ratios. The study reveals that there is a significant relationship between working capital management efficiency and profitability of both of the firms. The study also finds Square Pharmaceuticals Limited is more efficient in working capital management than Beximco Pharmaceuticals Limited. The financial performance of Beximco Pharmaceuticals Limited should be improved immediately through the efficient management of working capital to increase its profitability.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 5, Issue 2)
DOI	10.11648/j.ijefm.20170502.16
Page(s)	121-128
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Pharmaceuticals Industry, Profitability, Working Capital Management Efficiency, Bangladesh

References

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[5]	Kasiran, F. W., Mohamad, N. A., & Chin, O. (2016). Working Capital Management Efficiency: A Study on the Small Medium Enterprise in Malaysia. Procedia Economics and Finance, 35, 297-303.
[6]	Abbadi, S. M., & Abbadi, R. T. (2012). The determinants of working capital requirements in Palestinian industrial corporations. International Journal of Economics and Finance, 5 (1), 65.
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[8]	Akoto, R. K., Vitor, D. A., Angmor, P. L. (2013), Working capital management and profitability: Evidence from Ghanaian listed manufacturing firms. Journal of Economics and International Finance, 5 (9), 373-379.
[9]	Quayyum, S. T. (2011). Effects of working capital management and liquidity: evidence from the cement Industry of Bangladesh. Journal of Business and Technology (Dhaka), 6 (1), 37-47.
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[13]	Lazaridis, I., & Tryfonidis, D. (2006). Relationship between working capital management and profitability of listed companies in the Athens stock exchange.
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[17]	Rahman, M. M. (2011). Working capital management and profitability: a study on textiles industry. ASA University Review, 5 (1), 115-132.
[18]	Afza, T., & Nazir, M. S. (2007). Is it better to be aggressive or conservative in managing working capital. Journal of quality and technology management, 3 (2), 11-21.
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APA Style

Rejaul Karim, Md. Abdullah Al-Mamun, Md. Tota Miah. (2017). Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh. International Journal of Economics, Finance and Management Sciences, 5(2), 121-128. https://doi.org/10.11648/j.ijefm.20170502.16

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ACS Style

Rejaul Karim; Md. Abdullah Al-Mamun; Md. Tota Miah. Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2017, 5(2), 121-128. doi: 10.11648/j.ijefm.20170502.16

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AMA Style

Rejaul Karim, Md. Abdullah Al-Mamun, Md. Tota Miah. Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh. Int J Econ Finance Manag Sci. 2017;5(2):121-128. doi: 10.11648/j.ijefm.20170502.16

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@article{10.11648/j.ijefm.20170502.16,
  author = {Rejaul Karim and Md. Abdullah Al-Mamun and Md. Tota Miah},
  title = {Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {5},
  number = {2},
  pages = {121-128},
  doi = {10.11648/j.ijefm.20170502.16},
  url = {https://doi.org/10.11648/j.ijefm.20170502.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20170502.16},
  abstract = {Pharmaceutical is an important adjunct of industrialization in Bangladesh. This paper examines the effects of working capital management efficiency on the profitability of the two leading pharmaceuticals companies of Bangladesh - Square Pharmaceuticals Limited (SPL) and Beximco Pharmaceuticals Limited (BPL) and to make a comparison of financial efficiency between these two firms. The secondary data for a period of ten years (2006-2015) have been analyzed by using correlation, t-test, and different profitability, liquidity and solvency ratios. The study reveals that there is a significant relationship between working capital management efficiency and profitability of both of the firms. The study also finds Square Pharmaceuticals Limited is more efficient in working capital management than Beximco Pharmaceuticals Limited. The financial performance of Beximco Pharmaceuticals Limited should be improved immediately through the efficient management of working capital to increase its profitability.},
 year = {2017}
}

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TY  - JOUR
T1  - Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh
AU  - Rejaul Karim
AU  - Md. Abdullah Al-Mamun
AU  - Md. Tota Miah
Y1  - 2017/03/09
PY  - 2017
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DO  - 10.11648/j.ijefm.20170502.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 121
EP  - 128
PB  - Science Publishing Group
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AB  - Pharmaceutical is an important adjunct of industrialization in Bangladesh. This paper examines the effects of working capital management efficiency on the profitability of the two leading pharmaceuticals companies of Bangladesh - Square Pharmaceuticals Limited (SPL) and Beximco Pharmaceuticals Limited (BPL) and to make a comparison of financial efficiency between these two firms. The secondary data for a period of ten years (2006-2015) have been analyzed by using correlation, t-test, and different profitability, liquidity and solvency ratios. The study reveals that there is a significant relationship between working capital management efficiency and profitability of both of the firms. The study also finds Square Pharmaceuticals Limited is more efficient in working capital management than Beximco Pharmaceuticals Limited. The financial performance of Beximco Pharmaceuticals Limited should be improved immediately through the efficient management of working capital to increase its profitability.
VL  - 5
IS  - 2
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Author Information

Rejaul Karim

Department of Business Administration, Varendra University, Rajshahi, Bangladesh
Md. Abdullah Al-Mamun

Department of Business Administration, Pabna University of Science and Technology, Pabna, Bangladesh
Md. Tota Miah

Department of Business Administration, Varendra University, Rajshahi, Bangladesh

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Plain Text BibTeX RIS

APA Style

Rejaul Karim, Md. Abdullah Al-Mamun, Md. Tota Miah. (2017). Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh. International Journal of Economics, Finance and Management Sciences, 5(2), 121-128. https://doi.org/10.11648/j.ijefm.20170502.16

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ACS Style

Rejaul Karim; Md. Abdullah Al-Mamun; Md. Tota Miah. Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh. Int. J. Econ. Finance Manag. Sci. 2017, 5(2), 121-128. doi: 10.11648/j.ijefm.20170502.16

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AMA Style

Rejaul Karim, Md. Abdullah Al-Mamun, Md. Tota Miah. Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh. Int J Econ Finance Manag Sci. 2017;5(2):121-128. doi: 10.11648/j.ijefm.20170502.16

Copy | Download

@article{10.11648/j.ijefm.20170502.16,
  author = {Rejaul Karim and Md. Abdullah Al-Mamun and Md. Tota Miah},
  title = {Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {5},
  number = {2},
  pages = {121-128},
  doi = {10.11648/j.ijefm.20170502.16},
  url = {https://doi.org/10.11648/j.ijefm.20170502.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20170502.16},
  abstract = {Pharmaceutical is an important adjunct of industrialization in Bangladesh. This paper examines the effects of working capital management efficiency on the profitability of the two leading pharmaceuticals companies of Bangladesh - Square Pharmaceuticals Limited (SPL) and Beximco Pharmaceuticals Limited (BPL) and to make a comparison of financial efficiency between these two firms. The secondary data for a period of ten years (2006-2015) have been analyzed by using correlation, t-test, and different profitability, liquidity and solvency ratios. The study reveals that there is a significant relationship between working capital management efficiency and profitability of both of the firms. The study also finds Square Pharmaceuticals Limited is more efficient in working capital management than Beximco Pharmaceuticals Limited. The financial performance of Beximco Pharmaceuticals Limited should be improved immediately through the efficient management of working capital to increase its profitability.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Relationship Between Working Capital Management Efficiency and Profitability: A Comparative Study on Square Pharmaceuticals Limited and Beximco Pharmaceuticals Limited, in Bangladesh
AU  - Rejaul Karim
AU  - Md. Abdullah Al-Mamun
AU  - Md. Tota Miah
Y1  - 2017/03/09
PY  - 2017
N1  - https://doi.org/10.11648/j.ijefm.20170502.16
DO  - 10.11648/j.ijefm.20170502.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 121
EP  - 128
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20170502.16
AB  - Pharmaceutical is an important adjunct of industrialization in Bangladesh. This paper examines the effects of working capital management efficiency on the profitability of the two leading pharmaceuticals companies of Bangladesh - Square Pharmaceuticals Limited (SPL) and Beximco Pharmaceuticals Limited (BPL) and to make a comparison of financial efficiency between these two firms. The secondary data for a period of ten years (2006-2015) have been analyzed by using correlation, t-test, and different profitability, liquidity and solvency ratios. The study reveals that there is a significant relationship between working capital management efficiency and profitability of both of the firms. The study also finds Square Pharmaceuticals Limited is more efficient in working capital management than Beximco Pharmaceuticals Limited. The financial performance of Beximco Pharmaceuticals Limited should be improved immediately through the efficient management of working capital to increase its profitability.
VL  - 5
IS  - 2
ER  -

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