Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines
International Journal of Mechanical Engineering and Applications
Volume 5, Issue 4-1, July 2017, Pages: 8-13
Received: Nov. 30, 2016; Accepted: Dec. 4, 2016; Published: Jan. 6, 2017
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Nguyen Hai Quang, Head of Training Department, Vietnam Aviation Academy, Ho Chi Minh City, Vietnam
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The management of working capital plays an important role for the success of the business operations of the airline. The study is based on data from the financial statements of the airlines in the Association of Asia Pacific Airlines (AAPA) for the period of 2010-2015. The study results showed an opposite impact of day inventory outstanding and days of sales outstanding to profit before tax on assets; positive of current ratio to the profit before tax on assets and positive of financial leverage to profit before tax on equity. These results suggest that airlines need to rationalize supplies of aircraft spare parts inventory, increased the ability to recover cash from selling air transport products and strengthen collaborative relationships with suppliers in order to improve efficiency of working capital management, contribute to improve business efficiency.
Working Capital Management, Business Efficiency, Airlines
To cite this article
Nguyen Hai Quang, Impact of Working Capital Management to Business Efficiency of Association of Asia Pacific Airlines, International Journal of Mechanical Engineering and Applications. Special Issue: Transportation Engineering Technology - Part III. Vol. 5, No. 4-1, 2017, pp. 8-13. doi: 10.11648/j.ijmea.s.2017050401.12
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This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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