The Impact Of Working Capital Management On Profitability Of Small And Medium Scale Enterprises In Ethiopia :In The Case Of Gulele Sub- City

Abstract

The objective of the research presented here is to provide empirical evidence About the effects of working capital management on the profitability of a sample of Small and medium-sized firms. With this in mind. we collected a panel of 17 SMEs covering the period 2010-2014. The results, which are roust to the presence of Endogeneity, demonstrate that managers can create value by reducing their firm’s Number of days accounts receivable and inventories. Equally, shortening the cash Conversion cycle also improves the firm’s profitability.