Vol.: 02 Issue: 01 & 02: Short-Term Capital Management Performance of Food and Allied Industry: Evidence from Bangladeshi Listed Companies in Dhaka Stock Exchange

Ayesha Saimoon :

Assistant Professor (Finance), Department of Business Administration, Bangladesh Islami University, Dhaka. Email: [email protected]

Keywords

Short-Term Capital Management, Food & Allied Industry, Dhaka Stock Exchange, Corporate Performance, Financial Ratios.

JEL Classification:

F65, G32

Abstract

The study has chosen ten companies among seventeen companies from the food and allied industry listed in the Dhaka Stock Exchange. Evaluating the short-term capital management performance of the food and allied industry is the main objective of the study. The study is empirical in nature. Secondary data are given emphasis. Annual reports for Years 2018-2021 are used to evaluate the performance. To achieve the objective, some financial tools like Current Ratio, Cash Conversion Cycle, Current Liabilities to Total Assets, Average Payment Period Ratio, Average Collection Period, Inventory Turnover in Days, etc., are used. Efficient capital management may ensure the high performance of Bangladeshi food and allied industries. The study found a longer period for average collection, which is not good for the companies. Also, in some cases, the inventory turnover ratio is poor. The study also finds a positive relationship between efficient short-term capital management and firm profitability. To maintain and manage short-term capital, companies in food and allied industry must be serious about the average collection period, cash conversion cycle, inventory turnover, etc.