Journal of Contemporary Issues in Business Research

ISSN 2305-8277
Impact of Working Capital Management on Profitability: A Study of Electrical Machinery Apparatus Sector of KSE Listed Companies of Pakistan
Impact of Working Capital Management on Profitability: A Study of Electrical Machinery Apparatus Sector of KSE Listed Companies of Pakistan
Aisha Rauf, Awais Riaz, and Asma Fazal Elahi
Abstract

This study aims to find impact of working capital management on profitability of electrical machinery apparatus sector of Karachi Stock Exchange (KSE) listed companies of Pakistan. Return on assets is used as a proxy of profitability, which is dependent variable of this study. Independent variables that are used in this study are Current Ratio, Debt to Equity Ratio, Operating Cash flow to Debt Ratio, and Inventory Turnover Ratios of the firms. Time series data for period of 2007-2012 of electrical equipment firms listed on Karachi Stock Exchange were collected was collected from taken Karachi Stock Exchange and financial statements of firms, as well as. Our results showed that all independent variables are statistically significant and contains positive correlation with the profitability of electrical equipment firms listed on KSE. Therefore, there is need for policy makers to focus on the adoption of policies, which are in favor independent variables of this study.

Keywords
Return on assets; Inventory turnover ratio; Current ratio; Debt to equity ratio; Operating cash flow to debt ratio.

CITE THIS ARTICLE AS:
Copy and paste a formatted citation.

MLA
Rauf, Aisha, Awais Riaz and Asma Fazal Elahi. "Impact of Working Capital Management on Profitability: A Study of Electrical Machinery Apparatus Sector of KSE Listed Companies of Pakistan." Journal of Contemporary Issues in Business Research 4.4 (2015): 114-121.
APA
Rauf, A., Riaz, A., & Elahi, A. F. (2015). Impact of Working Capital Management on Profitability: A Study of Electrical Machinery Apparatus Sector of KSE Listed Companies of Pakistan. Journal of Contemporary Issues in Business Research, 4(4), 114-121.
Chicago
Rauf, Aisha, Awais Riaz, and Asma Fazal Elahi. 2015. "Impact of Working Capital Management on Profitability: A Study of Electrical Machinery Apparatus Sector of KSE Listed Companies of Pakistan." Journal of Contemporary Issues in Business Research 4 (4): 114-121.
   Go Back
«Previous   |  Next Article»
Table of Contents
------------------------------------- This Article
First published online before print: 2016
Vol. 4, No. 4, 2015, pp. 114-121
Full Text (PDF)

-------------------------------------
Classifications
Article
-------------------------------------
Google Scholar
Articles by Rauf, A. Articles by Riaz, A. Articles by Elahi, A. F.
Search for related content

-------------------------------------
» Get Permission
-------------------------------------
Social Bookmarking
Copyright © 2012-2015 Journal of Contemporary Issues in Business Research (JCIBR)

All Rights Reserved

Powered By: Institute of Contemporary Business Research (ICBR)

Creative Commons License
The work of JCIBR is licensed under CC BY-NC-ND