The effect of working capital management on firms' profitabilty: A research on metal goods, machinery and equipment construction which firms listed on BIST

The purpose of this study is to examine the relationship between working capital management and it's impact on profitabiltiy of 32 companies listed BİST metal goods, machinery and equipment construction sector. In this study is used data collected from 32 companies listed BİST manufacturing sector showing a seamless activity period between 2010-2017 and it has been applied 243 observation years of data. In this study, to determine relationship between working capital management and profitabiltiy return on asset is used as dependent variable while indepedent variables used leverage ratio, firm size, number of days inventory turnover, and cash conversion cycle. The emprical result of this study shows that, there is significant positive relationship between firm size, number of days inventory turnover and cash conversion cycle and return on asset. But, there is significant negative relationship between leverage ratio and return on asset.