Working Capital Management: Study of the Cement Industry of Pakistan

Abstract

This article investigates how working capital influences firm profitability. Pakistan's cement industry. Further, the research analyses the Average Collection Period, Average Payment Period, Inventory Turnover in Days, and Cash Conversion Cycle's impact on profitability.This analysis utilizes annual reports from PSE cement businesses (PSX).It included firm info. Quantitative research uses two approaches. Models first. Pearson correlates variables. Second, regression analysis is to determine profitability, liquidity, and other variables' causes. Working capital management (WCM) increases profitability by positively affecting the cash conversion cycle, inventory turnover, and sales. Managers are asked to give WCM more thought. Management must know how much money to use for fixed assets and working capital. Poor working capital management results.