THE EFFECT OF WORKING CAPITAL COMPONENTS ON SECTORAL AVERAGES: AN APPLICATION ON THE MANUFACTURING INDUSTRY

In this study, the data of 147 companies whose stocks are traded in Borsa Istanbul and operating in the manufacturing sector between 2011-2019 and the probability of working capital management to be above the sector average of companies' return on assets and equity profitability was examined. Panel logistic regression analysis was used in the study. As a result of the analysis; 1% increase in the current ratio increases the probability of the company to be above the sectoral asset profitability ratio, while the 1% increase in the receivable turnover period, cash ratio and stock turnover period reduce the probability of the company being above the sector average. Likewise, a 1% increase in the current ratio increases the probability of the company to be above the sectoral equity profitability ratio, while the 1% increase in the receivable turnover period and stock turnover decreases the probability that the company's return on equity ratio is above the sector average, while the change in the cash ratio increases the company's sectoral equity profitability. It has been found that it does not affect the probability of being above the rate.