Analysis of working capital management efficiency was done on a sample of 349 telecommunication
equipment companies. The analysis was done to find statistical evidence to support the four hypotheses.
It is found that significant statistical evidence exists to support the hypotheses (H1 and H2) that the
working capital management efficiency is negatively associated to the profitability and liquidity. When
the working capital management efficiency is improved by decreasing days of working capital, there is
improvement in profitability of the firms in telecommunication firms in terms of profit margin. It is
observed that there is no significant statistical evidence to support the hypothesis (H3) that the firms in
telecommunication equipment industry manage all the three components of WCM equally.