| Summary: | In partial fulfilment of the requirements for the degree of
Master of Commerce, 2018 === This study investigated the effect that working capital management has on company profitability within
a South Africa context and determined whether the relationship that was found differed depending on
the sector to which the entity belonged. In achieving this objective, companies listed on the JSE were
investigated over a five year period extending from 2012- 2016. The results of multiple regression
analysis revealed that when the relationship between working capital management and profitability
was considered for the Johannesburg Stock Exchange (JSE) as a whole, no significant relationship
was observed. However, the analysis of the results by sector revealed that the basic materials,
industrials and technology sectors had a significant negative relationship between accounts
receivable days and profitability. The basic materials sector revealed a significant positive relationship
between accounts payable days and profitability and the technology sector revealed a significant
positive relationship between inventory days and profitability. It can thus be seen that the relationship
that may exist when considering the JSE as a whole may not be true for companies within a specific
sector === XL2019
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