Building Models and Hypotheses to Evaluate the Impact of Payment Index Factors on Profit Growth

Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 07

Abstract

The article has presented the theory of profit, the meaning, the role of profit, and profit growth in businesses. By the method of overview research, the research team has clarified the content, factors affecting profit growth and research results of domestic and foreign authors. Based on this result, the research team evaluated the use of factors and stated that there is no conflict about the research results because the impact of the factors depends a lot on the environment itself and regulations. Specific to the study area. Therefore, in building the model and research hypotheses, we have applied 4 factors: Current Ratio, Average days of Receivable turnover ratio, Average of days of Inventory turnover ratio and Account Payable Turnover Ratio to be included in the research model as an independent variable. In addition, we also suggest using a new independent variable, Quick Ratio. The role of this observed variable is as a measure of accuracy when conducting research. The independent variable included in the model is Return on Asset. The proposed model is a theoretical study and may not be the best model. But we believe that using this model can help businesses reassess their operations and find ways to increase profits.

Authors and Affiliations

Le Thi Huong Tram, Tran Thi Thu Thuy, Vu Thi The

Keywords

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  • EP ID EP727251
  • DOI 10.47191/jefms/v6-i7-52
  • Views 63
  • Downloads 0

How To Cite

Le Thi Huong Tram, Tran Thi Thu Thuy, Vu Thi The (2023). Building Models and Hypotheses to Evaluate the Impact of Payment Index Factors on Profit Growth. Journal of Economics, Finance and Management Studies, 6(07), -. https://europub.co.uk/articles/-A-727251