Oceňování 2020, 13(3):37-50 | DOI: 10.18267/j.ocenovani.253

The impact of working capital optimization on the value of the company - part 1

Barbora Rýdlová¹, Ivana Svatová²

¹ Ing. Barbora Rýdlová, Ph.D. - vedoucí katedry, Katedra financí a oceňování podniku VŠE Praha

² Ing. Ivana Svatová - GT Appraisal services - Znalecký ústav a.s.

The article analyzes the relationship between working capital, as one of the value drivers, and the value of the company. It focuses on the synthesis of the conclusions of empirical studies of the relationship between working capital and various corporate indicators, such as profit, profitability, but also, for example, corporate indebtedness. The subject of research is also the relationship between working capital and industry and working capital and the size of the company. The relationship between the volume of working capital and the need for investment (existence of investment opportunities) also proves to be significant. The results of domestic and foreign studies from recent years are synthesized. The article can serve financial managers for a more comprehensive understanding of the management of working capital - ie how it impacts the growth and performance of the company. However, it is also intended for valuation professionals for the purpose of preparing the business plan for the DCF method.

Keywords: Working Capital; Market value; Valuation

Grants and funding:

Článek byl zpracován s využitím prostředků institucionální podpory na dlouhodobý koncepční rozvoj vědy a výzkumu na FFÚ VŠE IP 100040 a IG104029.

JEL classification: G30

Published: December 28, 2020  Show citation