Abstract
This study aims to examine the relationship between working capital management strategies
(aggressive, moderate, conservative) and profitability. The study relied on the financial
statements published by industrial pharmaceutical corporations in the last five years, namely
2009-2013, using the Pearson correlation coefficient between classifications according to
corporate working capital management strategies, as well as profitability classification (high,
medium and low) to determine whether a statistically significant relationship between the
strategies followed for working capital management and profitability of the corporation. The
study's results revealed a stronger relationship between working capital management strategy
and profitability of Jordanian industrial pharmaceutical corporations that followed a moderate
strategy compared with those that followed an aggressive strategy. Furthermore, Jordanian
pharmaceutical corporations didn’t follow a conservative working capital management
strategy.