WORKINg CAPITAL MANAGEMENT AND FIRM’S PROFITABILTY: AN OVERVIEW OF PAKISTAN’S chemical sector

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.