The impact of working capital management on the profitability of the oil industry in Kenya

Abstract

Working capital management is a very important component of corporate finance because it directly affects the liquidity and profitability of the company. A firm's value cannot be maximized in the long run unless it survives the short run. There are no specific set of rules or formulae to determine the working capital requirements of firms. Maximizing profits is said to be the objective of all firms. Efficiency in working capital management is so vital in a production firm; assets are mostly composed of current assets. The study sought to establish the impact of Working Capital Management on Profitability as evidenced in the oil industry in Kenya.