This study analyses the working capital management efficiency of firms from telecommunication
equipment industry. The relationship between working capital management efficiency and profitability is
examined using correlation and regression analyses. ANOVA analysis is done to study the impact of
working capital management on profitability. Using a sample of 443 annual financial statements of 349
telecommunication equipment companies covering the period 2001-2007, this study found evidence that
even though “days working capital” is negatively related to the profitability, it is not significantly
impacting the profitability of firms in telecommunication equipment industry