The impact of working capital management to profitability of chemicals companies listed on the Vietnamese stock market

Abstract

Working capital plays an important role in ensuring business continuity. Effective management of working capital will directly affect the success of the business. In contrast, poor management will lead to a lack of financial ability, difficulty in payment, reduced sales leads to reduced profits. This paper examines the impact of working capital management on the profitability of chemical companies listed on the Vietnamese stock market. Data sources used in the analysis are from the financial statements of 32 chemical companies listed on Hanoi and Hochiminh City Stock Exchange form 2019 to 2023. Through the results of SPSS 20, the authors assessed the impact of working capital management to profitability and recommendations to improve working capital management of chemical companies listed on the stock market of Vietnam.