Sustainable Working Capital and Financial Performance in Cement Industry of Pakistan: An OLS Approach*

Ali Raza (1) , Turgut Tursoy (2) , Sadam Ali Balal (3)
(1) Near East University , Cyprus
(2) Near East University , Turkey
(3) University of Sindh , Pakistan


This research aims to demonstrate for the first time how the Pakistani cement sector's financial health is impacted by sustainable working capital. The cement Industry uses sustainable working capital techniques and practices for magnificent financial outcomes. Considering the importance of these profitable techniques, we practice these in cement firms with a sample size of 25 cement firms listed in the Pakistan stock market (PSX) from 1997-2022. The data is collected from annual reports available on the financial statements. The current ratio and Quick ratio are measured for liquidity. Ordinary Least Square & correlation analysis indicates that the cash conversion cycle (β1= -0.564, p= 0.00), Current ratio (β2= -0.20, p= 0.040), Quick ratio (β3= -0.585, p= 0.000) and Inventory Turnover ratio (β4= -0.244, p= 0.004) have a negative effect on financial performance (Tobin's Q). This study helps policymakers that can handle liquidity Sustainable working capital for the cement industry.

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Ali Raza (Primary Contact)
Turgut Tursoy
Sadam Ali Balal
Raza, A., Tursoy, T., & Balal, S. A. . (2023). Sustainable Working Capital and Financial Performance in Cement Industry of Pakistan: An OLS Approach*. ECONOMÍA CHILENA, 26(1), 1–17.

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