The Impact of working capital management on the profitability of telecommunication sectors of Afghanistan.

Abstract: Current study aims to examine the association among management of working capital and profitability of telecommunication sectors of Afghanistan. In current study Cash ratio is used as cash management independent variables, Account receivable turnover ratio is used as Account receivable management independent variable, and inventory turnover ratio used as inventory management independent variable while Return on Assets is used as profitability dependent variable. Descriptive statistics is used to describe the data while correlation and fixed effect regression model are used to shoe the relationship among the dependent and independent variable. Five years panel data is collected from telecommunication sectors of Afghanistan from 2018 – 2022 and analysis through STATA. Finding of the study shows that both Cash management and Account receivable management shows significant and positive relationship with the profitability of the telecommunication sectors of Afghanistan. While inventory management shows an insignificant but still positive relationship with firm profitability. Keywords: Ratio, Turnover. Inventory, Return, Assets.