Abstract

In working capital, which is an important concept at the point of sustaining the activities of enterprises, enterprises plan to increase their ability to pay their debts by increasing their working capital. This situation enables enterprises to guarantee their businesses against the difficulties that they may face in the future. The aim of this study is to investigate the effect of working capital efficiency of enterprises operating in the food sector in Borsa Istanbul on firm profitability and firm value. Within the scope of the study, cash conversion period, inventory turnover period, debt repayment period and receivable collection period, return on assets ratio representing firm profitability and Tobin's Q value representing firm value were used in the model representing working capital for the period 2018-2022. According to the results of the analyses, a positive relationship was found between the working capital method and both firm profitability and firm value.