The relationship between working capital management andprofitability: An analysis for manufacturing industry in BIST

Efficient management of working capital is a prerequisite for the success of a enterprise and is a symbol and criterion of the financial health of an enterprise. Mismanagement of working capital elements can have significant result. Finance managers can be successful if they can balance between growth, profitability and liquidity. In this study, in order to investigate the relationship between working capital management and operating profitability, the data of 146 manufacturing companies traded in Borsa Istanbul between 2011-2017 were analyzed. As a result of the analysis, it is understood that there is a significant negative relationship between leverage ratio and return on assets. The current ratio, acid-test ratio, cash ratio and return on assets and return on equity were found to have the same meaningful relationship.