THE EFFECT OF WORKING CAPITAL MANAGEMENT POLICIES ON THE PERFORMANCE OF SELECTED BEVERAGE MANUFACTURING FIRMS IN ADDIS ABABA CITY ADMINISTRATIO

Abstract

The objective of this study was to show the effect of working capital management policies on the performance of large taxpayer beverage manufacturing companies in Addis Ababa city Administration. To achieve these objectives, an explanatory research design with a quantitative approach was employed using appropriate secondary data from financial statements gathered from sample manufacturing companies from the year 2013 to 2018. A multiple linear regression model with balanced panel data was employed to regress the extent to which independent variables i.e. Current assets to total assets ratio, Current liabilities to total asset ratio, firm’s size, Leverage (debt to asset ratio), and firms’ liquidity (current ratio) affects the performance of firms measured using return on assets (ROA