Working Capital Management vs Profitability in Agricultural Holdings (in the Context of Integration for “Old” and “New” EU Members)

Purpose: The aim of this article is the analysis relation among net working capital and profitability (ROA, ROS) agricultural holdings in European Union (EU) taking into consideration difference between “old” “new” EU members. Approach/Methodology: source data on production economic situation approximately 8400 Farm Accountancy Data Network (FADN). Analysed objects are divided four classes considering length (NWC) cycle (less than a year, more year) date accession to Union. centres gravity each class estimated with use Gretl program. relationship NWC assets also estimated. Findings: A statistically significant positive these categories revealed all analysed classes. Therefore, affects holding. factor differentiating strength impact cycle. It allows formulating concluding remark that most maintain it up 1 therefore respect safe. Practical Implications: study examines current EU. research may serve as unique information financial holdings. Achieved results be useful agriculture managers, politicians managers companies cooperating Originality/Value: management framework similar both groups countries – 15 13 countries. appears period achieve favourable concerning factors profitability. longer cycle, less conditions. However, practices appear relatively stable over period.