Abstract:
Purpose
Impact of Working Capital Management variables (DIO, DSO and DPO) on firm’s
profitability targeting the chemical sector of Pakistan.
Methodology & Design
Explanatory research design with a deductive approach has been employed. Data has been
picked from the financial statements of the chemical sector companies of Pakistan form
2016-2021. Data was run on a software separately for each dependent variable (ROA and
ROE).
Findings
Days inventory outstanding (DIO) and Days Payable outstanding (DPO) were found to be
insignificant whereas Days Sales Outstanding (DSO) significantly impacted both ROA and
ROE in relation to our research.
Limitations
access to other software, and scope ofthe research due to unavailability of Time constraints,
credible data.
Recommendations
other relatable variables should be Research should be expanded by extending the scope,
substituted for the one’s taken in this study and other tests should be carried out and the
results compared which would refine the study.
