Improving The Efficiency Of Working Capital Management In Pharmaceutical Industry

Student: Valeeva Anna

Supervisor: Aleksei Igorevich Balashov

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Finance (Master)

Year of Graduation: 2016

In context of difficult economic conditions, companies pay more attention to operating efficiency and working capital specifically. Inefficient working capital management may lead not only to poor company’s performance, but also be a reason of unability to realize long-term project and be a threat to business overall. Purpose of the study is to assess the impact of company’s working capital managerial decisions to company’s profitability. Research object is Russian pharmaceutical companies. Research subject - impact of factors that characterize working capital management for pharmaceutical company. First chapter defines theoretical aspects of working capital, describes literature review, concerning research issue. Second chapter presents analysis of Russian pharmaceutical industry, model specification. Also, four regressions are built in this chapter. Third chapter shows the results of econometric modelling and presents recommendations for improving working capital efficiency for pharmaceutical companies. Academic novelty involves defining the impact of results of working capital management to profitability of pharmaceutical company. Practical relevance consists in formulization recommendations for improving working capital management efficiency for pharmaceutical company. Key words: working capital, financial cycle, profitability, liquidity, pharmaceutical industry.

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