• JAISON JOSEPH

: Examining the connection between a company's working capital management tactics and profitability was the aim of this article. Additionally, try to comprehend how this relationship is affected by global macroeconomic conditions. We use fixed effects estimates and correlation analysis on our sample of industrial firms in the Middle East. While gross operating profit is used as a stand-in for a company's profitability, can the conversion cycle be used as a gauge of working capital management? Additionally, interactive models are used to examine how the global macroeconomic environment affects the relationship in question. The findings show a negative relationship between a company's cash conversion cycle and profitability. Our findings also indicate that managers can increase performance by increasing days payable and decreasing days receivable. Furthermore, our findings show that global macroeconomic factors should be taken into account when developing working capital plans. The results emphasize how crucial effective working capital management techniques are to raising business profitability.

Working capital Management, Profitability, Cash conversion cycle, Current assets, and current liabilities

"The Effect of Working Capital Management on Profitability", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 7, page no.e552-e555, July-2025, Available :http://www.jetir.org/papers/JETIR2507477.pdf

"The Effect of Working Capital Management on Profitability", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 7, page no. ppe552-e555, July-2025, Available at : http://www.jetir.org/papers/JETIR2507477.pdf