Performance Index of Working Capital Management, Utilization Index of Working Capital Management, Efficiency Index of Working Capital Management, Firm Profitability
Le, Assoc. Prof. Nhung Thi Kim
Tran, Ms. Trang Thi Thu
Dang, Ms. Phuong Thi Lan
This study aimed to examine the relationship between the working capital management efficiency and the profitability of plastic companies in Vietnam. Data from the financial statements of 37 listed plastics companies for the period from 2015 to 2019 has been collected. In this study, working capital management efficiency is evaluated through three indexes: Performance index of working capital management (PI), utilization index of working capital management (UI), and efficiency index of working capital management (EI). Research results have shown that there are statistically significant and positive relationships between the indexes and firm profitability in this period.