Determination of the Impact of Working Capital Management on Profitability: An Empirical Study from the Cement Sector in Pakistan

his paper examines the impact that the running assets management on the profitability of Pakistan cement sector. Moreover, the study outlines the main factors that basically determine the working capital in the financials of Pakistan cement sector. To manage firm’ sliquid assets which is working capital management and to reach a desire equilibrium level among profitability and risk, figures was collected from Annual Reports and sample consist of 10 Pakistani cement Companies listed at KSE from 2003-2008. The association between working capital management and profitability is examined with correlation; regression analysis the result proved that there is inverse and positive association between working capital management and profitability in cement industry of Pakistan.