Impact of working capital on firms' profitability. An empirical evidence from five manufacturing sectors of Karachi Stock Exchange pvt Limited

      Аннотация: In contemporary copmetitive age, one can not be oblivous of the time value of money. Liquidity or profifitability? This is the most alarming question mark for all the large scale manufacturing organisations across the globe. This reseach study is conducted with a view to analyse the impacts of working capital on firms' profitability. More investments in working capital lead to a reduction in profitability but enhace liquidity. More investments in fixed assets generate high profit but lower liquidity. A good finance manager is left with only one wise option that is the trade off between profit and liquidity.

Ключевые слова: Finance, Manufacturing, Profitability, ratio, Working capital