Journal of Academic Research for Humanities (JARH) is a double-blind peer-review, Open Free Access, online Multidisciplinary Research Journal
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Vol. 4 No. 4 (2024)
The International "Journal of Academic Research for Humanities"

Research Articles

The Impact of Working Capital Management on the Profitability of Telecommunication Sectors of Afghanistan

Published 28-11-2024

  • Mujeeb ur Rahman Habibi
    • ,
  • Ashuqullah Karimi

Mujeeb ur Rahman Habibi
PhD Scholar, at Rokhan Institute of Higher education Jalalabad Afghanistan

Ashuqullah Karimi
Master Scholar, Lecturers at Rokhan Institute of Higher education Jalalabad Afghanistan

Abstract

The current study aims to examine the association between the management of working capital and the profitability of the telecommunication sectors of Afghanistan. In the current study, the Cash ratio is used as the cash management independent variable, the Account receivable turnover ratio is used as the Account receivable management independent variable, and the inventory turnover ratio is used as the inventory management independent variable. In contrast, return on assets is used as a profitability-dependent variable. Descriptive statistics are used to describe the data while correlation and fixed effect regression models are used to show the relationship among the dependent and independent variables. Five years of panel data was collected from telecommunication sectors of Afghanistan from 2018 – 2022 and analysed through STATA. Finding of the study shows that both Cash management and Account receivable management shows significant and positive relationship with the profitability of the telecommunication sectors of Afghanistan. While inventory management shows an insignificant but still positive relationship with firm profitability.

Keywords

Ratio, Turnover , Inventory, Return, Assets.

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