An analysis about working capital management and financial performance of selected plastic manufacturing firms in Sri Lanka

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