Abstract
Working capital management is one of the important factors, which directly effects liquidity, profitability and even sustainability of the ongoing operations. In this study, effects of recent global financial crisis on working capital management and profitability were investigated on manufacturing companies, which are traded in Borsa Istanbul. The relation between profitability and working capital management, in terms of cash conversation cycle and its components, was explored by the use of panel methodology for 2005-2013 period. The findings of the study reveals that cash conversion cycle (CCC) is negatively related with performance. Regarding to components of CCC, while payable deferral period presented positive relation with performance, receivables collection period had a negative relation for most of the cases. There is little evidence about inventory conversion period. Finally, it is concluded that financial crisis has an effect on working capital and performance relation, as direction of the relation was subject to change during crisis and non- crisis period.
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