International Journal of Managment, IT and Engineering
  • Year: 2014
  • Volume: 4
  • Issue: 2

Impact of working capital management on firms profitability: A case of Pakistani listed firms

  • Author:
  • Rizwan Waheed, Nadeem Sohail, Muhammad Sajid1,, Shoaib Masood Khan
  • Total Page Count: 15
  • Page Number: 494 to 508

*Research Scholar, Banking & Finance, Government College University, Faisalabad, Pakistan

**Principal, College of Commerce, Government College University, Faisalabad, Pakistan

***Lecturer, Department of Banking & Finance, Government College University, Faisalabad, Pakistan

1Corresponding Author

JEL Classification: G32, L60, L25

Abstract

The Working Capital Management checks that company has satisfactory cash flow in order to meet their short term debts and operating expenses. The impact among working capital and firm's profitability is examined for the management of cash cycle management. Three sectors are selected as a sample size: Electricity, Automobiles & Parts and Oil & Gas sectors. The period of the study is from 2009–2012. The data are collect from the official's websites of companies by their annual reports. In this study, (NWC) networking capital and other variables are taken as independent variables and (PFT) Profitability is taken as dependent variable. In the combined analysis the NWC is positive coefficient and significantly impact on profitability. Hence, NADRT is negative coefficient and significant impact on PFT.

Keywords

Working Capital Management (WCM), Profitability, Manufacturing Firms