Components of working capital and profitability in Saudi Arabian companies

The study examines the influence of cash conversion cycle (one components working capital) on firm profitability measured in terms return equity (ROE), assets (ROA), Tobin’s q, and gross operating profit (GROP) manufacturing sector Saudi Arabia. selects a sample 100 companies from nine industrial sectors listed Tadawul Stock Exchange starting 2008 to 2019. A pooled regression is estimated report empirical results. results positive significant association between capital ROA, ROE, except for GROP, where there negative relationship. reports that growth performance associated with supplier’s financing inventory ordering cost. also show larger firms are more profitable than smaller firms. Hence, current confirms formulated hypothesis having profitability.