Effect of working capital management towards profitability of companies in Malaysia / Luqman Hakim Amran

The purpose of this research is to determine the profitability of companies under the technology sector in Malaysia through the working capital management. The objective of this study is to examine the relationship between cash conversion cycle (CCC), current ratio (CR), current asset to total asset ratio (CATAR), current liabilities to total asset ratio (CLTAR) and debt to asset ratio (DTAR) on asset (ROA). This study covers the period from 2008 until 2017 by using panel data. The results of this study concluded that four independent variables, CCC, CR, CATAR and CLTAR have significant relationship towards the ROA. However, DTAR does not have influences on ROA. Therefore, it highlights the importance of managing working capital requirements in order to improve on company's profitability and this aspect must be prioritize within the company's strategy to be more effective and efficient.