Efficient working capital management is an integral component of the overall corporate strategy to create shareholder value. The global oil and gas industry is experiencing rapid and dramatic change in its business environment. The recent global downturn, a primary challenge for many other industries, is in this case only one of many issues exerting significant pressure on cash flow, financing and operations. Few industries are experiencing the degree of change affecting the oil and gas industry. Issues such as pricing volatility, regulatory activism and an increasing need to rely on the most advanced exploration and extraction technologies command the lion's share of industry attention. But when the gaze is elsewhere, it often becomes all too easy to overlook a wide array of risks, costs and opportunities. This research work analyzes the effect of working capital management on firm profitability. In accordance with this aim, to consider statistically significant relationships between firm profitability and the components of cash conversion cycle at length, a sample consisting of the company's working capital analysis has been included. Empirical findings showed that accounts receivables period, inventory period and leverage affect firm profitability negatively; while growth (in sales) affects firm profitability positively.
