The effect of working capital on operating performance: An examination on exchange İstanbul

Working capital, which is also referred to as investment in current assets, is defined as the assets that an entity must possess in order to carry out its activities in a healthy manner and which are expected to be converted into money, consumed or used within a year. The adversities that occur in working capital management interrupt the business activities and remove them from the value maximization, which is the primary objective of the business. The main purpose of our study is to measure the effects of working capital on firm performance. In order to realize this aim, the data of 140 firms registered in Borsa Istanbul between 2008 and 2017 were evaluated and the effect of working capital on firm performance was tried to be determined. As a result of the study, a negative and statistically significant relationship was found between working capital components and firm profitability.