Current Assets, Current Liabilities and Profitability: A Cross Industry Analysis

Sujan Chandra Paul (), Md. Asiqur Rahman () and Jiasmin ()

Journal of Asian Business Strategy, 2021, vol. 11, issue 1, 55-68

Abstract: This study investigates the relationship between net profit after tax and total assets, total equities, total turnover, current assets and current liabilities. Unbalanced panel Data of 49 Companies from 5 industries listed in Dhaka Stock Exchanges from 2010-2019 were collected from the website of that companies. Ordinary Least Square (OLS), Pooled Ordinary Least Square (POLS), Driscoll-Kraay (DK), Second Stage Least square (2SLS), Generalized Methods of Moments (GMM) models are used in this study. This research found that total assets (TA) had significant positive relationship with net profit after tax (NPAT) in all models except POLS and GMM models, total turnover (TT) had significant positive relationship with net profit after tax in all models and current assets (CA) had significant negative relationship with net profit after tax in OLS and 2SLS model in food and allied sector. In Fuel and power sector, it is found that NPAT and TA had significant negative relationship in all models except GMM. In this sector, TE, TT, CA had significant positive relationship in different models but CL had insignificant relationship. In Pharmaceuticals and Chemical industry and Engineering sector, TE, TT, CA and CL had significant positive relationship in different models but in textile industry there is no significant relationship among these variables though the overall model is significant at 10% level.

Keywords: Net profit after tax; Total assets; Total equities; Total turnover; Current assets; Current liabilities. (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://archive.aessweb.com/index.php/5006/article/view/4268/6634 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:joabsj:v:11:y:2021:i:1:p:55-68:id:4268

Access Statistics for this article

More articles in Journal of Asian Business Strategy from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().