<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The aim of this research is to examine the relationship between working capital management and the profitability of Croatian manufacturing enterprises and to provide empirical evidence on the effects of working capital management on the level of profitability of manufacturing enterprises in the Republic of Croatia in the period from 2018 to 2021. The collected data were analyzed through multiple regression analysis, using a panel regression model with random effects. By analyzing panel data, the impact of receivables from customers, inventories, liabilities to suppliers, sales growth and GDP growth on the profitability of Croatian manufacturing companies was examined. The analysis of panel data examined the impact of trade receivables, inventories, payables, sales growth and GDP growth on the profitability of Croatian manufacturing enterprises. The obtained results also suggest that the variables the days sales outstanding, the days inventory outstanding and GDP growth are not statistically significant.</p>
</abstract>

The aim of this research is to examine the relationship between working capital management and the profitability of Croatian manufacturing enterprises and to provide empirical evidence on the effects of working capital management on the level of profitability of manufacturing enterprises in the Republic of Croatia in the period from 2018 to 2021. The collected data were analyzed through multiple regression analysis, using a panel regression model with random effects. By analyzing panel data, the impact of receivables from customers, inventories, liabilities to suppliers, sales growth and GDP growth on the profitability of Croatian manufacturing companies was examined. The analysis of panel data examined the impact of trade receivables, inventories, payables, sales growth and GDP growth on the profitability of Croatian manufacturing enterprises. The obtained results also suggest that the variables the days sales outstanding, the days inventory outstanding and GDP growth are not statistically significant.

The Influence of Working Capital Management on the Profitability of Manufacturing Enterprises - The Case of Croatia

PhD, Assistant Professor, University of Slavonski Brod, The Department of Social Sciences and Humanities

PhD Student, Assistant, University of Slavonski Brod, The Department of Social Sciences and Humanities

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The aim of this research is to examine the relationship between working capital management and the profitability of Croatian manufacturing enterprises and to...

The Influence of Working Capital Management on the Profitability of Manufacturing Enterprises - The Case of Croatia

Published Online: Dec 10, 2023

Page range: 126 - 139

DOI: https://doi.org/10.2478/jeb-2023-0023

Keywords
working capital management, profitability, Croatian manufacturing enterprises

© 2023 Milan Stanić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Influence of Working Capital Management on the Profitability of Manufacturing Enterprises - The Case of Croatia

Published Online: Dec 10, 2023

Page range: 126 - 139

DOI: https://doi.org/10.2478/jeb-2023-0023

Keywordsworking capital management, profitability, Croatian manufacturing enterprises

© 2023 Milan Stanić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
working capital management, profitability, Croatian manufacturing enterprises