Overview

Original Research

THE RELATIONSHIP BETWEEN WORKING CAPITAL RATIOS AND CORPORATE RETURN ON ASSETS: APPLIED STUDY OF INDUSTRIAL JORDANIAN COMPANIES

Dr. RAFAT AL BATAYNEH 1, Dr. AMER MOH’D AL- HAZIMEH 2, and Dr. BILAL NAYEF ZUREIGAT 3.

Vol 17, No 10 ( 2022 )   |  DOI: 10.5281/zenodo.7276729   |   Author Affiliation: Al Zahra College for woman, Muscat, Oman 1; Al albayt University, Amman, Jordan 2; Amman Arab University, Amman, Jordan 3.   |   Licensing: CC 4.0   |   Pg no: 1923-1930   |   To cite: Dr. RAFAT AL BATAYNEH, et al., (2022). THE RELATIONSHIP BETWEEN WORKING CAPITAL RATIOS AND CORPORATE RETURN ON ASSETS: APPLIED STUDY OF INDUSTRIAL JORDANIAN COMPANIES. 17(10), 1923–1930. https://doi.org/10.5281/zenodo.7276729   |   Published on: 31-10-2022

Abstract

The aim of the study to examine the effect of working capital management ratio (receivables turnover ratios , accounts payable turnover ratios , inventory turnover ratios and the cycle of cash transfer) on the financial performance( Return on assets) of Jordanian industrial listed companies on the Amman Stock Exchange. The study sample consisted of 60 industrial companies. To achieve the objectives of the study, the descriptive approach and the analytical method were followed using the (Stata) program for the years 2010-2018.The result shows a statistically significant positive effect at the level of (0.000), which is less than (0.05) for the receivable turnover ratios and accounts payable turnover ratios, inventory turnover ratios and return on assets. While there was negative relationship between cycle of cash transfer and return on assets

Keywords

working capital ratios, financial performance, industrial listed companies, Jordan