| Abstract [eng] |
The Master thesis undertakes exploration of the dynamics between business cycles, working capital management, and their collective impact on corporate profitability. The objective of this thesis is to provide valuable insights for practitioners, policymakers, and academics by illustrating the connection between business cycles, strategies for managing working capital, and overall profitability. The objectives of the Master thesis includes exploring concepts of business cycles and working capital management; research how businesses adapt their working strategies in response to different phases in business cycle; conduction of empirical analysis in order to quantify relations between working capital components and profitability measures; evaluation of relationship between macroeconomic indicators and company’s profitability; exploration of manufacturing and retail sector’s specific variations in the impact of working capital decisions on the financial performance of firms. The study introduces business cycles, picturing the diverse factors contributing to their recurrent patterns. It also depicts working capital management, emphasizing its pivotal role in sustaining day-to-day business operations, and introduces key ratios and metrics for evaluating financial health. The subsequent section delves into various business cycle theories, providing a comprehensive overview of differing viewpoints on economic fluctuations. The thesis theoretical part continues in an exploration between business cycles, working capital management, and corporate profitability, analyzing profitability factors within the context of diverse business cycle theories and considering sector-specific nuances in working capital management practices. By integrating theoretical frameworks with practical insights, the research contributes a holistic understanding of this complex interplay, offering valuable implications for both practitioners and policymakers in the realms of finance and business management. |
