Working capital, profitability, liquidity and solvency of healthcare insurance companies
The purpose of this study is to analyze the adequacy of a working capital management normative model, in terms of profitability, liquidity and solvency. Through an empirical and analytical research, the analysis of variance results (ANOVA) of a sample containing financial information from 621 health...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2010-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123021648003 |
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| _version_ | 1825207354018234368 |
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| author | André Luiz de Souza Guimarães Valcemiro Nossa |
| author_facet | André Luiz de Souza Guimarães Valcemiro Nossa |
| author_sort | André Luiz de Souza Guimarães |
| collection | DOAJ |
| description | The purpose of this study is to analyze the adequacy of a working capital management normative model, in terms of profitability, liquidity and solvency. Through an empirical and analytical research, the analysis of variance results (ANOVA) of a sample containing financial information from 621 healthcare insurance companies for the year 2006 ,show that different working capital structures are associated with different levels of profitability, liquidity and solvency, suggesting a preference order different from the one theorized by Fleuriet / Braga. The results indicate that a certain structure - where financial current assets exceed onerous current liabilities, and cyclical current assets exceed cyclical current liabilities ¿ is associated with higher levels of profitability, liquidity and solvency. In addition, the study reiterates the importance of efficient management of working capital to the performance and survival of healthcare insurance companies. |
| format | Article |
| id | doaj-art-965cc5d1a6cd43b7bf7f2cf6359ce095 |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2010-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-965cc5d1a6cd43b7bf7f2cf6359ce0952025-02-06T23:39:29ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2010-01-01723759Working capital, profitability, liquidity and solvency of healthcare insurance companiesAndré Luiz de Souza GuimarãesValcemiro NossaThe purpose of this study is to analyze the adequacy of a working capital management normative model, in terms of profitability, liquidity and solvency. Through an empirical and analytical research, the analysis of variance results (ANOVA) of a sample containing financial information from 621 healthcare insurance companies for the year 2006 ,show that different working capital structures are associated with different levels of profitability, liquidity and solvency, suggesting a preference order different from the one theorized by Fleuriet / Braga. The results indicate that a certain structure - where financial current assets exceed onerous current liabilities, and cyclical current assets exceed cyclical current liabilities ¿ is associated with higher levels of profitability, liquidity and solvency. In addition, the study reiterates the importance of efficient management of working capital to the performance and survival of healthcare insurance companies.http://www.redalyc.org/articulo.oa?id=123021648003working capitalprofitabilitysolvencyhealthcarefleuriet model |
| spellingShingle | André Luiz de Souza Guimarães Valcemiro Nossa Working capital, profitability, liquidity and solvency of healthcare insurance companies BBR: Brazilian Business Review working capital profitability solvency healthcare fleuriet model |
| title | Working capital, profitability, liquidity and solvency of healthcare insurance companies |
| title_full | Working capital, profitability, liquidity and solvency of healthcare insurance companies |
| title_fullStr | Working capital, profitability, liquidity and solvency of healthcare insurance companies |
| title_full_unstemmed | Working capital, profitability, liquidity and solvency of healthcare insurance companies |
| title_short | Working capital, profitability, liquidity and solvency of healthcare insurance companies |
| title_sort | working capital profitability liquidity and solvency of healthcare insurance companies |
| topic | working capital profitability solvency healthcare fleuriet model |
| url | http://www.redalyc.org/articulo.oa?id=123021648003 |
| work_keys_str_mv | AT andreluizdesouzaguimaraes workingcapitalprofitabilityliquidityandsolvencyofhealthcareinsurancecompanies AT valcemironossa workingcapitalprofitabilityliquidityandsolvencyofhealthcareinsurancecompanies |