Impact of working capital management on profitability for Spanish fish canning companies

Credit restrictions, such as those happening in the current context shaped by crisis derived from COVID-19, make working capital management (WCM) a driving force behind SME performance. This paper analyses whether WCM policies affect economic and financial profitability of Spanish companies fish canning industry. Spain leads EU’s production canned seafood industry is key sector for economy. To assess WCM-profitability relationship, we applied dynamic panel data methodology sample consisting 377 during period 2010–2018. We can conclude that related to collection (Days Sales Outstanding or DSO) inventory conversion Inventory DIO). Moreover, empirical evidence reveals existence an optimal level receivables balances benefits increasing sales opportunity costs customer funding. The findings also identify convex relationship between investment profitability.