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Working Capital Management and Profitability of Real Estate Industry in Jordan: An Empirical Study

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  • Basman Al Dalayeen

Abstract

Working capital is described as the capital available to meet the day-to-day operations, and depending on the industry, it could be a relatively high percentage of the total assets of the organization. It is the difference between two current assets and current liabilities. Working capital management is important because of its effects on the firm's profitability and risk, and consequently its value. In this research paper, an attempt has been made to examine the impact of working capital management on the profitability of selected real estate companies in Jordan. ROCE is used as dependent proxy variable for profitability and CR, DTR, ITR are used as independent proxy variable for substantiating the impact of working capital management on the profitability of companies. The results of data analysis show that there is a significant impact of working capital management on the profitability of selected real estate companies.JEL classification numbers: L85Keywords: Working capital management, real estate industry, ROCE, CR, DTR, ITR

Suggested Citation

  • Basman Al Dalayeen, 2017. "Working Capital Management and Profitability of Real Estate Industry in Jordan: An Empirical Study," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(2), pages 1-3.
    • Handle: RePEc:spt:apfiba:v:7:y:2017:i:2:f:7_2_3
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    3. Sebastian Ofumbia Uremadu & Ben-Caleb Egbide & Patrick E. Enyi, 2012. "Working Capital Management, Liquidity and Corporate Profitability Among Quoted Firms in Nigeria Evidence from the Productive Sector," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(1), pages 80-97, January.
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    1. Sujan Chandra Paul & Md. Asiqur Rahman & Jiasmin, 2021. "Current Assets, Current Liabilities and Profitability: A Cross Industry Analysis," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 11(1), pages 55-68, June.

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