Impact of working capital management on profitability of Industrial sector in Iraq

Sardar Shaker Ibrahim
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Sardar Shaker Ibrahim: Financial accounting techniques, Duhok Polytechnic University, Duhok, Iraq

International Journal of Finance & Banking Studies, 2018, vol. 7, issue 1, 27-32

Abstract: This paper observes the impact of working capital management on profitability of industrial sector in Iraq. Four companies based in Iraq namely: Iraqi Date processing, Iraqi carton manufactories, Baghdad soft drinks and Iraqi for tufted carpets randomly selected and analyzed for the present study over the period 2007 to 2016. Annual reports of these companies have been studied and significant ratios calculated. The variables that were identified as independent for working capital were, current ratio and quick ratio, while return on equity ROE as dependent variable for profitability. The Ordinary Least Square (OLS) model used to examine the impact of working capital management on profitability. Results indicate that ROE is positively related with working capital variables.

Keywords: Working Capital; Profitability; Current Ratio; Quick Ratio (search for similar items in EconPapers)
Date: 2018
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