FINAL YEAR PROJECT -FINANCE

日期 : Jan 2017 - Aug 2017

ABSTRACT: Working Capital Management is considered to be as most important for improving profitability and performance of firms. Optimal management of working capital of firm can be achieved by making the trade-off between liquidity and profitability. This research is an attempt to find the result about working capital management and its impact on the performance of Cement Companies listed on Pakistan Stock Exchange from 2007 – 2016. The study shows the impact of working capital management i.e. Current Ratio, CCC (Cash Conversion Cycle) , Debt Ratio, Current Asset to Total asset, Firm Size on Profitability i.e. Return on Asset, Return on Equity & Performance i.e. Tobin’s Q. By applying regression on the data shows the result of the study that component of WCM has significant impact on Return on Asset, Return on Equity whereas the Working capital management has insignificant impact on Tobin’s Q. The study shows that working capital management significantly increases the profitability of firm & Current ratio has a positive significant impact on Return on Asset & Return on Equity. The core purpose of this study is to evaluate the impact of working capital management on Profitability and Performance for a sample of companies of Cement Industry listed on Pakistan Stock Exchange for a period of 10 years from 2007 - 2016. Firms can improve their profitability by enhancing its working capital. Key Words: Working Capital Management, Profitability, Tobin’s Q