Components of Working Capital and Profitability: A Case of Fuel and Energy Sector of Pakistan

This paper analyzed the impact of components of working capital on the profitability of fuel and energy sector of Pakistan. Initially six variables have been taken, and panel data analysis has been applied to identify their significance. Results revealed that fixed effect model is an appropriate model based on Hausman test. Further, debt ratio, current ratio, and company size have significant impact on the profitability.