Acta Univ. Agric. Silvic. Mendelianae Brun. 2014, 62(4), 677-684 | DOI: 10.11118/actaun201462040677

Impact of Working Capital Management on Sales of Enterprises Focusing on the Manufacture of Machinery and Equipment in the Czech Republic

Zdeněk Motlíček, Dana Martinovičová
Department of Business Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

A method of managing working capital significantly affects the performance of enterprises. It is be possible to assume that this influence might vary with the sector and economic cycle. The paper presents an empirical research which aims to identify individual links between working capital and company's sales. The results indicate a relatively strong positive correlation of these variables or their individual components. Findings complement the gap in the literature written by both Czech and abroad authors since the issue is not widely discussed. The research presented in this paper was carried out on medium-sized enterprises located in the Czech Republic and dealing with the manufacture of machinery and other equipment.

Keywords: working capital, sales, GDP, aggressive management policy, conservative management policy, enterprise, inventories, receivables
Grants and funding:

This article was supported by the Internal Grant Agency of the Mendel University in Brno [No. 43/2014].

Published: October 4, 2014  Show citation

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Motlíček, Z., & Martinovičová, D. (2014). Impact of Working Capital Management on Sales of Enterprises Focusing on the Manufacture of Machinery and Equipment in the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 62(4), 677-684. doi: 10.11118/actaun201462040677
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