Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines

Nguyen Hai Quang

doi:doi:10.11648/j.ijmea.s.2017050401.12

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Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines

Nguyen Hai Quang

Published in International Journal of Mechanical Engineering and Applications (Volume 5, Issue 4-1)

Received: 30 November 2016 Accepted: 4 December 2016 Published: 6 January 2017

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Abstract

The management of working capital plays an important role for the success of the business operations of the airline. The study is based on data from the financial statements of the airlines in the Association of Asia Pacific Airlines (AAPA) for the period of 2010-2015. The study results showed an opposite impact of day inventory outstanding and days of sales outstanding to profit before tax on assets; positive of current ratio to the profit before tax on assets and positive of financial leverage to profit before tax on equity. These results suggest that airlines need to rationalize supplies of aircraft spare parts inventory, increased the ability to recover cash from selling air transport products and strengthen collaborative relationships with suppliers in order to improve efficiency of working capital management, contribute to improve business efficiency.

Published in	International Journal of Mechanical Engineering and Applications (Volume 5, Issue 4-1) This article belongs to the Special Issue Transportation Engineering Technology - Part III
DOI	10.11648/j.ijmea.s.2017050401.12
Page(s)	8-13
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), 2017. Published by Science Publishing Group

Keywords

Working Capital Management, Business Efficiency, Airlines

References

[1]	Abbasali Pouraghajan, and Milad Emamgholipourarchi, “Impact of Working Capital Management on Profitability and Market Evaluation: Evidence from Tehran Stock”, International Journal of Business and Social Science, Vol. 3, No. 10, 2012, pp. 311-318.
[2]	Amarjit Gill, Nahum Biger, and Neil Mathur, “The relationship between working capital management and profitability: Evidence from the United States”, Business and Economics Journal, Vol. 2010: BEJ-10, 2010. Access from http://astonjournals.com/manuscripts/Vol2010/BEJ-10_Vol2010.pdf.
[3]	Binti Mohamad, and Binti Mohd Saad, “Working Capital Management: The Effect of Market Valuation and Profitability in Malaysia”. International Journal of Business and Management, Vol. 5, No. 11, 2010, pp. 140-147.
[4]	Charles H. Gibson, “Financial Reporting & Analysis: Using Financial Accounting Information”. 13th ed. South-Western, 2013.
[5]	Hoang Trong, and Chu Nguyen Mong Ngoc, “Analyzing data research with SPSS”, Statistical Publishing, Ha Noi, 2005.
[6]	Huynh Phuong Dong, and Jyh-tay Su, “The Relationship between Working Capital Managementand Profitability: A Vietnam Case”, International Research Journal of Finance and Economics”, Issue 49, 2010, pp. 59-67.
[7]	Ioannis Lazaridis, and Dimitrios Tryfonidis, “Relationship between working capital management and profitability of listed companies in the Athens stock exchange”, Journal of Financial Management and Analysis, Vol. 19, No. 1, 2006, pp. 19-25.
[8]	Kaplan, “CFA Level 1 Book 3: Financial Reporting and Analysis”, United States of America, 2013.
[9]	Raheman , and Nasr, “Working capital management and profitability - case of Pakistani firms”, International Review of Business Research Papers, Vol.3, No.1, 2007, pp.279-300.
[10]	Wobshet Mengesha, “Impact of Working Capital Management on Firms’ Performance: The Case of Selected Metal Manufacturing Companies in Addis Ababa, Ethiopia”, Master of Science Thesis, Jimma, Ethiopia, 2014.
[11]	Zubair Arshad and Muhammad Yasir Gondal, “Impact of working capital management on profitability a case of the Pakistan Cement industry”, Interdisciplinary Journal of Contemporary Research in Business, Vol. 5, No. 2, 2013, pp. 384-390.

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APA Style

Nguyen Hai Quang. (2017). Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines. International Journal of Mechanical Engineering and Applications, 5(4-1), 8-13. https://doi.org/10.11648/j.ijmea.s.2017050401.12

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ACS Style

Nguyen Hai Quang. Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines. Int. J. Mech. Eng. Appl. 2017, 5(4-1), 8-13. doi: 10.11648/j.ijmea.s.2017050401.12

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AMA Style

Nguyen Hai Quang. Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines. Int J Mech Eng Appl. 2017;5(4-1):8-13. doi: 10.11648/j.ijmea.s.2017050401.12

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@article{10.11648/j.ijmea.s.2017050401.12,
  author = {Nguyen Hai Quang},
  title = {Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines},
  journal = {International Journal of Mechanical Engineering and Applications},
  volume = {5},
  number = {4-1},
  pages = {8-13},
  doi = {10.11648/j.ijmea.s.2017050401.12},
  url = {https://doi.org/10.11648/j.ijmea.s.2017050401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijmea.s.2017050401.12},
  abstract = {The management of working capital plays an important role for the success of the business operations of the airline. The study is based on data from the financial statements of the airlines in the Association of Asia Pacific Airlines (AAPA) for the period of 2010-2015. The study results showed an opposite impact of day inventory outstanding and days of sales outstanding to profit before tax on assets; positive of current ratio to the profit before tax on assets and positive of financial leverage to profit before tax on equity. These results suggest that airlines need to rationalize supplies of aircraft spare parts inventory, increased the ability to recover cash from selling air transport products and strengthen collaborative relationships with suppliers in order to improve efficiency of working capital management, contribute to improve business efficiency.},
 year = {2017}
}

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TY  - JOUR
T1  - Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines
AU  - Nguyen Hai Quang
Y1  - 2017/01/06
PY  - 2017
N1  - https://doi.org/10.11648/j.ijmea.s.2017050401.12
DO  - 10.11648/j.ijmea.s.2017050401.12
T2  - International Journal of Mechanical Engineering and Applications
JF  - International Journal of Mechanical Engineering and Applications
JO  - International Journal of Mechanical Engineering and Applications
SP  - 8
EP  - 13
PB  - Science Publishing Group
SN  - 2330-0248
UR  - https://doi.org/10.11648/j.ijmea.s.2017050401.12
AB  - The management of working capital plays an important role for the success of the business operations of the airline. The study is based on data from the financial statements of the airlines in the Association of Asia Pacific Airlines (AAPA) for the period of 2010-2015. The study results showed an opposite impact of day inventory outstanding and days of sales outstanding to profit before tax on assets; positive of current ratio to the profit before tax on assets and positive of financial leverage to profit before tax on equity. These results suggest that airlines need to rationalize supplies of aircraft spare parts inventory, increased the ability to recover cash from selling air transport products and strengthen collaborative relationships with suppliers in order to improve efficiency of working capital management, contribute to improve business efficiency.
VL  - 5
IS  - 4-1
ER  -

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Author Information

Nguyen Hai Quang

Head of Training Department, Vietnam Aviation Academy, Ho Chi Minh City, Vietnam

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APA Style

Nguyen Hai Quang. (2017). Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines. International Journal of Mechanical Engineering and Applications, 5(4-1), 8-13. https://doi.org/10.11648/j.ijmea.s.2017050401.12

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ACS Style

Nguyen Hai Quang. Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines. Int. J. Mech. Eng. Appl. 2017, 5(4-1), 8-13. doi: 10.11648/j.ijmea.s.2017050401.12

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AMA Style

Nguyen Hai Quang. Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines. Int J Mech Eng Appl. 2017;5(4-1):8-13. doi: 10.11648/j.ijmea.s.2017050401.12

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@article{10.11648/j.ijmea.s.2017050401.12,
  author = {Nguyen Hai Quang},
  title = {Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines},
  journal = {International Journal of Mechanical Engineering and Applications},
  volume = {5},
  number = {4-1},
  pages = {8-13},
  doi = {10.11648/j.ijmea.s.2017050401.12},
  url = {https://doi.org/10.11648/j.ijmea.s.2017050401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijmea.s.2017050401.12},
  abstract = {The management of working capital plays an important role for the success of the business operations of the airline. The study is based on data from the financial statements of the airlines in the Association of Asia Pacific Airlines (AAPA) for the period of 2010-2015. The study results showed an opposite impact of day inventory outstanding and days of sales outstanding to profit before tax on assets; positive of current ratio to the profit before tax on assets and positive of financial leverage to profit before tax on equity. These results suggest that airlines need to rationalize supplies of aircraft spare parts inventory, increased the ability to recover cash from selling air transport products and strengthen collaborative relationships with suppliers in order to improve efficiency of working capital management, contribute to improve business efficiency.},
 year = {2017}
}

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TY  - JOUR
T1  - Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines
AU  - Nguyen Hai Quang
Y1  - 2017/01/06
PY  - 2017
N1  - https://doi.org/10.11648/j.ijmea.s.2017050401.12
DO  - 10.11648/j.ijmea.s.2017050401.12
T2  - International Journal of Mechanical Engineering and Applications
JF  - International Journal of Mechanical Engineering and Applications
JO  - International Journal of Mechanical Engineering and Applications
SP  - 8
EP  - 13
PB  - Science Publishing Group
SN  - 2330-0248
UR  - https://doi.org/10.11648/j.ijmea.s.2017050401.12
AB  - The management of working capital plays an important role for the success of the business operations of the airline. The study is based on data from the financial statements of the airlines in the Association of Asia Pacific Airlines (AAPA) for the period of 2010-2015. The study results showed an opposite impact of day inventory outstanding and days of sales outstanding to profit before tax on assets; positive of current ratio to the profit before tax on assets and positive of financial leverage to profit before tax on equity. These results suggest that airlines need to rationalize supplies of aircraft spare parts inventory, increased the ability to recover cash from selling air transport products and strengthen collaborative relationships with suppliers in order to improve efficiency of working capital management, contribute to improve business efficiency.
VL  - 5
IS  - 4-1
ER  -

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