WORKING CAPITAL MANAGEMENT AND PROFITABILITY: A CASE OF
                ALBA COUNTY COMPANIES

               Adina Elena Dănuleţiu, “1 Decembrie 1918” University of Alba Iulia


ABSTRACT: The purpose of this study is to analyze the efficiency of working capital management of
companies from Alba County. The relation between the efficiency of the working capital management and
profitability is examined using Pearson correlation analyses and using a sample of 20 annual financial
statements of companies covering period 2004-2008. The conclusion to our study is that there is a weak
negative liniar correlation between working capital management indicators and profitability rates.

Keywords: working capital, profitability, Days Sales Outstanding, Days Inventory Outstanding, Days
Payable Outstanding, Days Working Capital

JEL codes: G11, G30, G31