Affect of Working Capital Management on Firms Profitability in Sugar Industry of Pakistan

Zafar Ullah Malik and Athar Iqbal

MPRA Paper from University Library of Munich, Germany

Abstract: Management of working capital performs a very vital part in the performance of firms in sugar industry. This thesis tests the impact of working capital management on firm’s profitability in sugar industry of Pakistan for years 1999 to 2009. To analyze this, data of 19 sugar mills which are listed at Karachi Stock Exchange is used. The result shows that the Sales Growth, Current Ratio, No of Days Inventory and No of Days Accounts Payables are significantly affecting the profitability of the firms while Sales, Gearing Ratio and No of Days Account Receivables are insignificant in the research. Pearson Correlation and Multiple Linear Regression are used in this research to study the relationship between variables.

Keywords: WCM; Working Capital Management; Sugar; Payable cycle; Receivable Cycle (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2012-05-01
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