Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/218163 
Year of Publication: 
1997
Citation: 
[Journal:] South African Journal of Business Management [ISSN:] 2078-5976 [Volume:] 28 [Issue:] 1 [Publisher:] African Online Scientific Information Systems (AOSIS) [Place:] Cape Town [Year:] 1997 [Pages:] 1-5
Publisher: 
African Online Scientific Information Systems (AOSIS), Cape Town
Abstract: 
The two conflicting goals of working capital management are profitability and liquidity. This article looks at return on investment as a measure of profitability and some traditional and more recently developed working capital concepts as liquidity measures. Associations were measured between profitability and the liquidity concepts by using chi-square analysis and stepwise forward regression. The statistical test results showed that a traditional working capital leverage ratio, current liabilities divided by funds flow, displayed the greatest associations with return on investment. Well-known liquidity concepts such as the current and quick ratios registered insignificant associations whilst only one of the newer working capital concepts, the comprehensive liquidity index, indicated significant associations with return on investment.
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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