Paper Title
The Effects of Working Capital Management on Firms Profitability: Evidence from Private Limited Companies in Hawassa City

Abstract
The study examined the effect of working capital management on firms’profitability in20 selected PLCs in Hawassa city for a period of five years from 2010 to 2014.Purposive and convenient samplings were used to draw the sample from the population and collect the data. Secondary data was collected from the PLCs audited financial statements. To analyse the secondary data panel data analysis: random effect model was used. Profitability of PLCs was measured by ROA. ACP, ICP, APP, CCC and CR were used as an independent variable. The finding of the study revealed that ACP and ICP have a negative and significant impact on profitability of the companies. Moreover, APP and CCC have a positive and significant impact on the PLCs profitability.CR, control variables and industry dummy variable were insignificant.Finance managers can create a strong financial performance by shortening ACP and ICP; and by increasing CCC and delaying APP. Keywords - Cash Conversion Cycle, Current Ratio, Hawassa, Private Limited Companies, Return on Asset, Working Capital Management