Impact of working capital on firms' profitability

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.

Autorentext

Imran Naseer, completed M.Phil in commerce from Hailey College of Commerce, University of the Punjab, Lahore, Pakistan. Currently working as a Public servant in Provincial Management Services, Government of the Punjab, Pakistan.