One
possible reason for this is that the total asset includes the fixed asset, which is huge for
telecommunication equipment industry when compared to other industries. This heavy fixed asset
requirement cancels out the effect of working capital management efficiency on income related to total
assets. It is also found that the correlation between DSO and IA and the correlation between DSO and IS
are not significant while DIO and DPO are significantly negatively correlated to IA and IS. This
indicates that there is evidence that managing DSO does not have much impact on return on assets and
profit margin because of heavy fixed assets, which is major contributor to the total assets.