Effect of Working Capital Management on the Financial Performance of Manufacturing Firms in Sultanate of Oman

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Tammam Salam Hamood AL-Sharji, R. G. H. S. S. A.-H. (2017). Effect of Working Capital Management on the Financial Performance of Manufacturing Firms in Sultanate of Oman. Innovative Journal of Business and Management, 6(03), 38–42. https://doi.org/10.15520/ijbm.vol6.iss3.68.pp38-42
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Abstract

Managing working capital in a manufacturing organization is an important aspect. It measures the company ability to pay off short-term liabilities. The management of working capital effects on the primary objective (earning profit) of the organization. This motivated the researchers to study the “effect of Working Capital Management on the Financial Performance of Manufacturing Firms in Sultanate of Omanâ€. The study period is 10 years and data have been collected from 19 manufacturing companies listed in MSM. Mean, standard deviation, correlation and regression are used in this research to analyse the effect of working capital in the profitability among the sample firms. The study concludes that the debtor management, inventory management, creditor management and cash conversion cycle negatively effects on the financial performance of listed manufacturing firms in Sultanate of Oman over the 10 years period.

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