The purpose of this paper is to investigate the impact of working capital on the corporate Performance in the cement, chemical and engineering sectors of Pakistan. The data is obtained from the annual reports issued by the companies during 2007-2011. To verify the relationship between the measures of working capital and profitability regression models are used. The results show that average collection period and operating cycle are positively whereas average age of inventory is negatively related to the return on equity. Firm size is positively whereas leverage is negatively related to the return on equity. Average payment period is negatively whereas cash conversion cycle is positively and significantly related with return on equity. The results indicate that working capital management influences the firms’ profitability.

The purpose of this paper is to investigate the impact of working capital on the corporate Performance in the cement, chemical and engineering sectors of Pakistan. The data is obtained from the annual reports issued by the companies during 2007-2011. To verify the relationship between the measure...