Abstract

This study examined the relationship between working capital management and performance of listed companies Stock Exchange in Tehran. A total of 40 companies from the cement industry for the period 2007 to 2010 of which only 25 were selected for this study had the condition. In order to achieve the objectives, this study surveys the exploration of correlation regression analysis and used the curve obtained, the regression equation. To test the hypothesis, quantitative analysis was used as a method. The results showed a negative relationship between the variables of working capital management and the company's performance and the only variable cash conversion cycle did not show a significant relationship. There is often a negative correlation between the variables studied. This study is based on five assumptions impact of working capital management on corporate profitability is examined. Therefore, the results suggest that the variables in working capital (average collection of receivables, average inventory turnover period, the average net debt and average transaction cycle) and net operating profit is significant negative correlation Net cash conversion cycle and only illustrates the relationship is not significant. Thus, it showed that in debt collection and debt payment period, the turnover of inventory and net trade cycle to reduce the profitability of companies will increase.