Since efficient working capital management is expected to improve a company’s profitability and
liquidity [7], DWC should be negatively correlated to IA, IS and CCE. The correlation coefficients from
Table 3 indicate that there is statistical evidence that the profitability and liquidity are negatively related
to the working capital efficiency. However for IA, even though DWC is negatively correlated, the
statistical evidence is not significant. This means that IA is not significantly correlated to the DWC. One
possible reason for this is that the total asset includes the fixed asset, which is huge for