THE EFFECT OF WORKING CAPITAL ON PROFITABILITY: AN APPLICATION ON BIST REGISTERED TECHNOLOGY COMPANIES

Abstract

Businesses need sufficient funds to continue their activities. This fund can be transferred to businesses as a result of their activities, or it can be provided by partners or foreign sources. The level of adequacy of funding provided by operations or other procedures affects the functioning of business operations. Insufficient funds affect the business profitability by disrupting the business and increasing the cost of the needed fund, while the excess funds remain idle, decrease in value and not turn into an investment. In this study, the effect of the working capital in the enterprises on the profitability was tried to be determined according to the multiple regression analysis method for a certain number of companies in the BIST Technology sector.