物流专业英语翻译.doc

Logistics cost management impact on profitability 1 The importance of logistics cost management Logistics cost management is very vital aspect in financial management of a business. A firm can be very profitable, but if this is not rendered into cash from operations within the same operating cycle, the firm would need to borrow to support its continued working capital needs. For this study various statistical tools such as correlation and multiple regressions lire used. The study comes to conclusion that the increase in the profitability of the company is less than the proportion to decrease in working capital. While the performance levels of business organization have traditionally been attributed to general managerial factors such as manufacturing, marketing and operations, working capital management may have a consequent impact on survival and growth of business organization. The management of working capital is important to the financial health of businesses of all sizes. The amounts invested in working capital are often high in proportion to the total assets employed and so it is vital that these amounts are used in an efficient and effective way. Therefore, there must be a trade-off between these two objectives of the firms. One objective should not be at cost of the other because both have their importance. If we do not care about profit, we cannot survive for a longer period. On the other hand, if we do not care about liquidity, we may face the problem of insolvency or bankruptcy. For these reasons working capital management should be given proper consideration and will ultimately affect the profitability of the firm. This discussion of the importance of working capital management, its different components and its effects on profitability leads us to the problem statement which we will be analyzing. This research is focusing on working capital management and its effects on profitability. 2 The study of logistics cost management 2.1 Objectives of the Stud