The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia

The efficiency of working assets (working capital) management is one of the crucial factors of performance in trade. It is quite understandable when one takes into account the fact that the biggest part of total assets of the trading companies is related to working assets, i.e. inventories as a part...

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Main Author: Radojko LUKIC
Format: Article
Language:English
Published: Editura ASE 2013-12-01
Series:Revista de Management Comparat International
Subjects:
Online Access:https://www.rmci.ase.ro/no14vol5/07.pdf
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author Radojko LUKIC
author_facet Radojko LUKIC
author_sort Radojko LUKIC
collection DOAJ
description The efficiency of working assets (working capital) management is one of the crucial factors of performance in trade. It is quite understandable when one takes into account the fact that the biggest part of total assets of the trading companies is related to working assets, i.e. inventories as a part of current assets. With the application of appropriate methodology this paper explores determinants and impact of efficiency of working assets management on the profitability of trade in Serbia for the 2008-2012 period, based on an example of commercial companies which are required by law to submit the final financial statements. General conclusion is that there was insufficient efficiency of working assets in observed period, which was reflected on the profitability of trade in Serbia. Related to this, it is necessary to take all relevant measures to improve the efficiency of working assets in order to increase the profitability of trade in Serbia. This especially applies to the application of modern information and communication technologies, particularly in the supply chain management (enterprise resource planning system, RFID).
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spelling doaj-art-57f88894bdea4b77b22dd13f1fc38cac2025-08-20T02:37:33ZengEditura ASERevista de Management Comparat International1582-34582601-09682013-12-01145731745The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia Radojko LUKIC0 Faculty of Economics, University of BelgradeThe efficiency of working assets (working capital) management is one of the crucial factors of performance in trade. It is quite understandable when one takes into account the fact that the biggest part of total assets of the trading companies is related to working assets, i.e. inventories as a part of current assets. With the application of appropriate methodology this paper explores determinants and impact of efficiency of working assets management on the profitability of trade in Serbia for the 2008-2012 period, based on an example of commercial companies which are required by law to submit the final financial statements. General conclusion is that there was insufficient efficiency of working assets in observed period, which was reflected on the profitability of trade in Serbia. Related to this, it is necessary to take all relevant measures to improve the efficiency of working assets in order to increase the profitability of trade in Serbia. This especially applies to the application of modern information and communication technologies, particularly in the supply chain management (enterprise resource planning system, RFID). https://www.rmci.ase.ro/no14vol5/07.pdfaccounts receivableinventorycurrent liquiditynet working assetscash cycle
spellingShingle Radojko LUKIC
The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia
Revista de Management Comparat International
accounts receivable
inventory
current liquidity
net working assets
cash cycle
title The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia
title_full The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia
title_fullStr The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia
title_full_unstemmed The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia
title_short The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia
title_sort influence of working assets efficiency management on the profitability of trade in serbia
topic accounts receivable
inventory
current liquidity
net working assets
cash cycle
url https://www.rmci.ase.ro/no14vol5/07.pdf
work_keys_str_mv AT radojkolukic theinfluenceofworkingassetsefficiencymanagementontheprofitabilityoftradeinserbia
AT radojkolukic influenceofworkingassetsefficiencymanagementontheprofitabilityoftradeinserbia