The Impact of Working Capital Management on the Financial Performance of Industrial Companies Listed on the Palestine Stock Exchange

This study aimed to test the impact of some working capital management indicators (such as average collection period, average storage period and average repayment period) on the financial performance of industrial companies listed in Palestine Stock Exchange during the period 2012–2018. The researchers meant to analyze the content of the financial statements of the industrial companies listed on the Palestine Stock Exchange as a study tool based on the annual reports of thirteen companies whose data were available during the period when this study was being conducted. The study findings showed that there was no impact of the working capital management represented in the average collection period on the financial performance of industrial companies listed on the Palestine Stock Exchange. A review of the results of the statistical analysis revealed an effect of (the average storage period and the average repayment period) on the financial performance of the companies listed on the Palestine Stock Exchange. One of the most important recommendations of the study is that industrial companies are supposed to review the collection policies by adopting credit policies that depend on the financial ability of customers to repay because this has an impact on the financial performance of companies. Thus, the results of the study showed that there was no effect of the collection period on the financial performance of companies.