The level of a net working capital and companies’ profitability based on the example of trade companies quoted on the Warsaw Stock Exchange

Abstract

The article is the attempt to verify the existence of a connection between the level of a net working capital and companies’ profitability. It contains explanation of the theory of the net working capital and shows methods of its calculation. The article also describes strategies of the capital management and factors affecting the choice of the right strategy. Finally, the article shows the results of research, carried out on the example of companies, quoted on the Warsaw Stock Exchange. The aim of the research was to verify, if there is a negative connection between the level of a net working capital and companies’ profitability.