2. Literature Review
Different methods of research in the field of working capital management have been tried.
Zawaira & Mutenheri (2014), studied the effect of working capital management on the
profitability of non-financial companies listed on the Zimbabwe stock exchange. The data
analysis was conducted on32companiesduring the2010-2012 period. The study findings
showed a lack of statistically significant relationship between the profitability of the company
and itscollocation
(2014), studied the impact of working capital management on
profitability based on data collected from 2008-2012 on manufacturing companies in the
Colombo Stock Exchange. The findings suggest that profitability is negatively associated
with the company's collection period, inventory turnover period, and its cash conversion
cycle. Furthermore, it was found that the profitability is positively associated with a
company's payment period. Darabi & Yousef (2012),