Abstract: This study focused on examining how management of working capital can affect the financial performance of non-financial companies listed at Dar-es-salaam stock exchange. Financial performance in this study was represented by return on equity and market ratio namely Tobin's q while working capital management was represented by liquidity ratio (current ratio), debtor collection period and inventory turnover ratio. The study used both a descriptive and quantitative research design. Firms listed on-financial at Dar-es-salaam stock of exchange covering the period of 10 years from 2008 to 2017. This study concluded a significant negative relation between debtor collection period and financial performance. While creditor payment period, inventory days and liquidity ratio are positively related with performance. But the relation with creditor payment period and liquidity ratio is significant. The firm must focus on reducing receivable period and increasing inventory days and payable period for them to improve financial performance.
Keywords: Working capital , DSE, Dar-es-salaam Stock Exchange, Financial performance
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