Companies Listed In Tehran Stock Exchange

In this study, the effect of working capital management on the profitability of companies listed in Tehran Stock Exchange has been examined. Working capital management is the management of current assets such as cash, short-term investments, receivable accounts and inventories, and current liabilities of business units. Therefore, the aim of this study is that to examine the effects of variables of working capital management, liquidity and profitability of the companies listed in Stock Exchange. The statistic sample was consisted of 107 companies, which were studied during 2007 to 2011. The ROE variable was used as a criterion of profitability and the dependent variable. The variables of the cash flow, the flow of goods, current ratio and current investment of markets were used as independent variables and variables of financial leverage and sales growth were used as control variables. The results showed that the cash conversion cycle, company’s size and flow of goods had a negative impact on profitability, however this impact on the current ratio was reversed