Impact of working capital management on firm’s profitability: an application on BIST tourism companies

In this study, the effect of the working capital management on the profability of tourism firms that are trading in Borsa Istanbul (BIST) has been analyzed for the period after the crisis 2008. The study covers semi-annual data of 6 tourism firms operated in Turkey for the period of 2011:12-2017:12. In the study, Th effect of working capital management on the profability of firms has been analyzed using panel data analysis. The effect of cash conversion cycle (CCC) and its components which are considered as the basic indicators of the working capital on profability of tourism firms has been analyzed separately as independent variables in separate models. According to the results of the study, it has been determined that cash conversion cycle, accounts receivables period and inventory turnover period have statistically significant negative effects on profability of tourism firms. On the other hand, it has been determined that accounts payables period has statistically significant positive effect on profability of tourism firm