Implications of Working Capital Management on Profitability: A Research on Mutual Trust Bank Limited

Abstract

Liquidity basically refers the ability of the firm’s to increase its fund in assets and meet obligations when they become liable. Working capital considers all the current liabilities and current assets of a firm. This report was prepared to examine the ability of mutual trust bank on the basis of working capital management efficiency and their liquidity maintaining and profitability. This paper tries to find out the empirical result of relationship between working capital management and profitability of Mutual Trust Bank ltd. Data was collected for 9 years from 2006 to 2014. And all this data was collected from secondary data sources which is published in the financial statement. To measure the variations the descriptive statistics such as mean and standard deviation was used here. Correlation and regression analysis was applied to test the data and hypothesis. We mainly find out here some topics such as • Cash cycle • Debtors collection period • Payment of creditors Which have significant relationship with the liquidity of the bank