Relationship between Working Capital Management and Profitability in Context of Manufacturing Industries in Bangladesh

Sayeda Tahmina Quayyum


This study is an attempt to investigate if there is any relationship between working capital management and
profitability of manufacturing corporations. For this purpose Corporations enlisted with the Dhaka Stock
Exchange has been selected and the analysis covers a time period from year 2005 to 2009. The purpose of this
paper is to figure out if there is statistically significant relationship between the profitability and working capital
management and help explain the necessity of firms optimizing their level of working capital management
efficiency and in that way management taking productive actions to maximize their profitability. The result of
this study clearly shows that except for food industry all other selected industries have a significant level of
relationship between the Profitability Indices and various Working Capital Components. This paper also shows
that the significance level of relationship varies from industry to industry.

Full Text:



Copyright (c) 2011 International Journal of Business and Management

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online) Email:

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.