Relationship Between Working Capital Management and Profitability in Turkey Industrial Listed Companies

Abstract

The present study investigated the effect of working capital management component on corporate profitability. A sample of 106 firms listed on Borsa Istanbul Stock Exchange (BIST) for the period of 2003-2013 was used. The secondary data for analysis were taken from Bloomberg’s Database. The present study aims to explore the effect of working capital management components on corporate profitability. We observed that there was a negative correlation between gross operating profit and accounts receivables (A/R). We also found that there was a positive correlation between gross operating profit and number of days inventory. But they did not affect the profitability of firms in the study at a significant level.