Abstract:
The purpose of this research is to analyze the effect of working capital management
on firm profitability. In accordance with this purpose, to consider statistically significant
relationships between firm profitability and working capital of listed plastic manufacturing
firms for the period of 2006-2010 has been analyzed under statistical techniques. The
researcher used the data collected from annual report published by the Colombo stock
exchange. Empirical findings of the study show that positive strong relationship between
working capital and financial performance. The findings enhance the knowledge base of
working capital management and will help companies manage working capital efficiently in
growing profitability
