Net Working Capital and the Profitability: Empirical Evidence form Amman Stock Exchange

  •  Zaher Abdel Fattah Al-Slehat    
  •  Bader Mustafa Al-Sharif    


The current study investigates empirically the relationship between the net working capital and the profitability of the industrial companies for the period of 9 years from 2009-2017.

To fulfill this aim, the researcher used the analytical descriptive method on a sample consisted of 26 industrial companies listed in Amman Stock Exchange (ASE). The empirical result shows that net operating income and return on asset have positive relationship with net working capital. However, there is no relationship between net working capital and profit margin. The study recommends that to more attention for investing the net working capital by determining investment opportunities that reflect positively on profitability. Additionally, managers should raise the awareness of their employees regarding the importance of internal and external investment to increase the market share.

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