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ANALYZING THE WORKING CAPITAL STRUCTURE AND PROFITABILITY OF SUPERMARKET CHAINS: AN EVIDENCE FROM ISTANBUL STOCK EXCHANGE TRADE INDEX

Year 2013, Volume: 1 Issue: 1, 57 - 69, 01.08.2013

Abstract

This study aims to find out if any relationship exists between the selected financial ratios of the firm groups traded in Istanbul Stock Exchange Trade Index (BIST XTCRT) by regression and t-test analyses.

Regression analysis shows that Return on Equity (ROE) and Return on Assets (ROA) have relationships with both Current Ratio and Inventory Turnover Ratio. Additionally; a relation is observed between Return On Sales (ROS) and Inventory Turnover Ratio besides another relation exists between Gross Margin Return On Inventory (GMROI) and Inventory Turnover Ratio for the group of companies of supermarket chains. T-test analysis indicates that Current Ratios, Inventory Turnover Ratios, Receivables Turnover Ratios and GMROI differ from supermarket chains and other trade firms groups listed in BIST XTCRT significantly.

References

  • Abdou, H.A., Kuzmic, A., Pointon, J., Lister R.J., (2012). “Determinants of Capital Structure in the UK Retail Industry: A Comparison of Multiple Regression and Generalized Regression Neural Network”, Intelligent Systems in Accounting, Finance and Management, 19, pp.151-169.
  • Albayrak A.S., Akbulut R., (2008). “Karlılığı Etkileyen Faktörler: İMKB Sanayi ve Hizmet Sektörlerinde İşlem Gören İşletmeler Üzerine Bir İnceleme”, Sosyal Bilimler Dergisi, Cilt: 4, Sayı 7, pp. 55-83.
  • Altunışık, R., Mert, K., (2001). “Tüketicilerin Alışveriş Merkezlerindeki Davranışları Üzerine Bir Saha Çalışması: Tüketiciler Kontrolü Yitiriyor mu?”, 6. Ulusal Pazarlama Kongresi, pp. 145-152, Erzurum
  • Ashraf, C.K., (2012). “The Relationship Between Working Capital Efficiency and Profitability”, Advances In Management, Vol. 5, No. 12, pp. 60-74.
  • Charitou, M., Lois, P., Santoso, H.B., (2012). “The Relationship Between Working Capital Management And Firm's Profitability: An Empirical Investigation For An Emerging Asian Country”, International Business and Economics Research Journal, Vol. 11, No. 8, pp. 839-847.
  • Chaudhary, H., Tripathi, G., (2012). “An Analysis of Inventory Turnover and Its Impact on Financial Performance in Indian Organized Retail Industry”, Journal of Services Research, Volume 12, Number 1
  • Chen, Y.-F., Sternquist, B., (1995). “Differences Between International and Domestic Japanese Retailers”, The Service Industries Journal, Volume 15, Issue 4, pp. 118-133.
  • Coşkun, E., Kök, D., (2011). “Çalışma Sermayesi Politikalarının Karlılık Üzerine Etkisi: Dinamik Panel Uygulaması”, Ege Akademik Bakış, Cilt: 11, Özel Sayı, pp. 75-85.
  • Cronin Jr., J.J., (1985). “Determinants of Retail Profit Performance: A Consideration of Retail Marketing Strategies”. Journal of the Academy of Marketing Science., Vol. 13 Issue 4, pp. 40-53.
  • Delen, D., Kuzey, C., Uyar, A., (2013). “Measuring Firm Performance Using Financial Ratios: A Decision Tree Approach”, Expert Systems with Applications, Issue 40, pp. 3970-3983.
  • Deloitte, (2013). Retail Sector Update, June.
  • Droms, W.G., Miller, C.W., Lacerte, G.A., (1979). “A Financial Profile Of Small Retailing Firms”, American Journal of Small Business, Volume III, Number 4, pp. 42-58.
  • Ekşi, İ.H., Akçi, Y., (2009) “Sektör Farklılıklarının Finansal Oranlar Üzerindeki Etkileri: İMKB İmalat Sanayi Firmalarında Bir Uygulama”, Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Cilt: 14, Sayı: 1, pp. 115-126.
  • Gill, A., Biger, N., Mathur, N., (2010). “The Relationship Between Working Capital Management And Profitability: Evidence From The United States”, Business and Economics Journal, pp. 1-9.
  • Goddarda, J., Tavakolib, M., Wilson, J.O.S., (2005). “Determinants of Profitability in European Manufacturing and Services: Evidence from a Dynamic Panel Model”, Applied Financial Economics, Issue 15, pp. 1269–1282.
  • Gombola M.J., Ketz J.E., (1983). “Financial Ratio Patterns in Retail and Manufacturing Organizations, Financial Management, pp. 45-56
  • Karacaer, S., Kapusuzoğlu, A., (2008). “An Analysis of the Effect of Financial Ratios on Financial Situation of Turkish Enterprises Resulting from their Annual Operations”, International Research Journal of Finance and Economics, Issue 19, pp. 139-150.
  • Kiracı, M., (2009). “Stok Yönetimi ve Karlılık İlişkisinin Finansal Oranlar aracılığıyla İncelenmesi: İMKB İmalat Sektöründe Bir Arastırma”, ODTÜ Gelisme Dergisi, Sayı: 36, pp. 161-195
  • Kolias, G.D., Dimelis, S.B., Filios, V.P., (2011). “An Empirical Analysis of Inventory Turnover Behaviour In Greek Retail Sector: 2000–2005”, International Journal of Production Economics, Volume 133, Issue 1, pp. 143–153.
  • Kotler. P. (2000). “Marketing Management: Editing the New Millennium”. 10th. Edition, New York: Prentice Hall.
  • Külter, B., Demirgüneş, K., (2007). “Perakendeci Firmalarda Karlılığı Etkileyen Değişkenler: Hisse Senetleri İMKB'de İşlem Gören Perakendeci Firmalar Üzerinde Ampirik Bir Çalışma”, Ç.Ü. Sosyal Bilimler Enstitüsü Dergisi, Cilt 16, Sayı 1, pp. 445-460.
  • Matsumoto, K., Shivaswamy, M., Hoban, J.P.Jr., (1995). “Security Analysts' Views of the Financial Ratios of Manufacturers and Retailers”, Financial Practice and Education, pp. 44-55.
  • Phillips, M.D., Volker, J.X., Anderson, S.J., (2008). “A Behavioral Comparison of Financial Ratios for Different Size Privately-Held Retail and Service Businesses”, Journal of Behavioral Studies in Business, Vol.1, No.1, pp. 5-12.
  • Quayyum, S.T., (2012). “Relationship Between Working Capital Management and Profitability in Context of Manufacturing Industries in Bangladesh”, International Journal of Business and Management, Vol. 7, No. 1, pp. 58-69.
  • Turkish Competition Authority, (2012). Türkiye Hızlı Tüketim Ürünleri Perakendeciliği Sektör İncelemesi Nihai Raporu
Year 2013, Volume: 1 Issue: 1, 57 - 69, 01.08.2013

Abstract

References

  • Abdou, H.A., Kuzmic, A., Pointon, J., Lister R.J., (2012). “Determinants of Capital Structure in the UK Retail Industry: A Comparison of Multiple Regression and Generalized Regression Neural Network”, Intelligent Systems in Accounting, Finance and Management, 19, pp.151-169.
  • Albayrak A.S., Akbulut R., (2008). “Karlılığı Etkileyen Faktörler: İMKB Sanayi ve Hizmet Sektörlerinde İşlem Gören İşletmeler Üzerine Bir İnceleme”, Sosyal Bilimler Dergisi, Cilt: 4, Sayı 7, pp. 55-83.
  • Altunışık, R., Mert, K., (2001). “Tüketicilerin Alışveriş Merkezlerindeki Davranışları Üzerine Bir Saha Çalışması: Tüketiciler Kontrolü Yitiriyor mu?”, 6. Ulusal Pazarlama Kongresi, pp. 145-152, Erzurum
  • Ashraf, C.K., (2012). “The Relationship Between Working Capital Efficiency and Profitability”, Advances In Management, Vol. 5, No. 12, pp. 60-74.
  • Charitou, M., Lois, P., Santoso, H.B., (2012). “The Relationship Between Working Capital Management And Firm's Profitability: An Empirical Investigation For An Emerging Asian Country”, International Business and Economics Research Journal, Vol. 11, No. 8, pp. 839-847.
  • Chaudhary, H., Tripathi, G., (2012). “An Analysis of Inventory Turnover and Its Impact on Financial Performance in Indian Organized Retail Industry”, Journal of Services Research, Volume 12, Number 1
  • Chen, Y.-F., Sternquist, B., (1995). “Differences Between International and Domestic Japanese Retailers”, The Service Industries Journal, Volume 15, Issue 4, pp. 118-133.
  • Coşkun, E., Kök, D., (2011). “Çalışma Sermayesi Politikalarının Karlılık Üzerine Etkisi: Dinamik Panel Uygulaması”, Ege Akademik Bakış, Cilt: 11, Özel Sayı, pp. 75-85.
  • Cronin Jr., J.J., (1985). “Determinants of Retail Profit Performance: A Consideration of Retail Marketing Strategies”. Journal of the Academy of Marketing Science., Vol. 13 Issue 4, pp. 40-53.
  • Delen, D., Kuzey, C., Uyar, A., (2013). “Measuring Firm Performance Using Financial Ratios: A Decision Tree Approach”, Expert Systems with Applications, Issue 40, pp. 3970-3983.
  • Deloitte, (2013). Retail Sector Update, June.
  • Droms, W.G., Miller, C.W., Lacerte, G.A., (1979). “A Financial Profile Of Small Retailing Firms”, American Journal of Small Business, Volume III, Number 4, pp. 42-58.
  • Ekşi, İ.H., Akçi, Y., (2009) “Sektör Farklılıklarının Finansal Oranlar Üzerindeki Etkileri: İMKB İmalat Sanayi Firmalarında Bir Uygulama”, Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Cilt: 14, Sayı: 1, pp. 115-126.
  • Gill, A., Biger, N., Mathur, N., (2010). “The Relationship Between Working Capital Management And Profitability: Evidence From The United States”, Business and Economics Journal, pp. 1-9.
  • Goddarda, J., Tavakolib, M., Wilson, J.O.S., (2005). “Determinants of Profitability in European Manufacturing and Services: Evidence from a Dynamic Panel Model”, Applied Financial Economics, Issue 15, pp. 1269–1282.
  • Gombola M.J., Ketz J.E., (1983). “Financial Ratio Patterns in Retail and Manufacturing Organizations, Financial Management, pp. 45-56
  • Karacaer, S., Kapusuzoğlu, A., (2008). “An Analysis of the Effect of Financial Ratios on Financial Situation of Turkish Enterprises Resulting from their Annual Operations”, International Research Journal of Finance and Economics, Issue 19, pp. 139-150.
  • Kiracı, M., (2009). “Stok Yönetimi ve Karlılık İlişkisinin Finansal Oranlar aracılığıyla İncelenmesi: İMKB İmalat Sektöründe Bir Arastırma”, ODTÜ Gelisme Dergisi, Sayı: 36, pp. 161-195
  • Kolias, G.D., Dimelis, S.B., Filios, V.P., (2011). “An Empirical Analysis of Inventory Turnover Behaviour In Greek Retail Sector: 2000–2005”, International Journal of Production Economics, Volume 133, Issue 1, pp. 143–153.
  • Kotler. P. (2000). “Marketing Management: Editing the New Millennium”. 10th. Edition, New York: Prentice Hall.
  • Külter, B., Demirgüneş, K., (2007). “Perakendeci Firmalarda Karlılığı Etkileyen Değişkenler: Hisse Senetleri İMKB'de İşlem Gören Perakendeci Firmalar Üzerinde Ampirik Bir Çalışma”, Ç.Ü. Sosyal Bilimler Enstitüsü Dergisi, Cilt 16, Sayı 1, pp. 445-460.
  • Matsumoto, K., Shivaswamy, M., Hoban, J.P.Jr., (1995). “Security Analysts' Views of the Financial Ratios of Manufacturers and Retailers”, Financial Practice and Education, pp. 44-55.
  • Phillips, M.D., Volker, J.X., Anderson, S.J., (2008). “A Behavioral Comparison of Financial Ratios for Different Size Privately-Held Retail and Service Businesses”, Journal of Behavioral Studies in Business, Vol.1, No.1, pp. 5-12.
  • Quayyum, S.T., (2012). “Relationship Between Working Capital Management and Profitability in Context of Manufacturing Industries in Bangladesh”, International Journal of Business and Management, Vol. 7, No. 1, pp. 58-69.
  • Turkish Competition Authority, (2012). Türkiye Hızlı Tüketim Ürünleri Perakendeciliği Sektör İncelemesi Nihai Raporu
There are 25 citations in total.

Details

Primary Language English
Journal Section Makale
Authors

Bayram Topal

Hakan Tunahan

Ahmet Dizkırıcı

Publication Date August 1, 2013
Submission Date July 16, 2013
Published in Issue Year 2013 Volume: 1 Issue: 1

Cite

APA Topal, B., Tunahan, H., & Dizkırıcı, A. (2013). ANALYZING THE WORKING CAPITAL STRUCTURE AND PROFITABILITY OF SUPERMARKET CHAINS: AN EVIDENCE FROM ISTANBUL STOCK EXCHANGE TRADE INDEX. İşletme Bilimi Dergisi, 1(1), 57-69.