To test the relationship between working capital management and corporate profitability, Deloof [5, p. 573] used a sample of 1,009 large Belgian non-financial firms for a period of 1992-1996. By using correlation and regression tests, he found significant negative relationship between gross operating income and the number of days accounts receivable, inventories, and accounts payable of Belgian firms. Based on the study results, he suggests that managers can increase corporate profitability by reducing the number of day’s accounts receivable and inventories.