1. IntroductionWorking capital in an important component of financial management and essentially working capital management (WCM) has been approached in many ways. It focuses attention on the management of current assets, current liabilities and their relationships that exist between them. In other words, working capital management can be defined as the management of a company's liquidity, cash flow, marketable securities, accounts receivable, and inventory. In the current context of rising cost of capital and shortage of funds, the importance of working capital deserves special attention. It is widely accepted that a company's profitability depends on how its working capital is managed. Inefficient working capital management not only reduces profitability but can also lead to a financial crisis. On the other hand, proper working capital management leads to material savings and guarantees financial returns at the optimal level, even with the minimum level of capital employed. It is well known that excessive or inadequate working capital is detrimental to a business. Excessive working capital leads to unremunerative use of scarce funds. On the other hand, inadequate working capital usually interrupts a company's normal operations and harms profitability (Soenen, 1993). There are many cases of business failure due to insufficient working capital. Furthermore, working capital must play a vital role in keeping pace with the scientific and technological developments taking place in the concerned field of the pharmaceutical industry. If new ideas, methods and techniques are not injected or put into practice due to lack of working capital, the company will definitely not be able to cope...... middle of paper ...... between the size of the company and its profitability.H04: There is no negative relationship between the use of debt by cement, oil and gas companies and profitability.Ha4: There is a negative relationship between the use of debt by businesses and profitability. The study is organized as follows: The second section reviews the literature on theoretical and empirical work on working capital management and its effects on profitability. The third section presents the conceptual framework which includes the variables and their relationships as well as the model specification. The fourth section covers sample and data collection techniques. The fifth section deals with data analysis and statistical results. Section six discusses the results and section seven includes the conclusions. Works cited (Soenen, 1993), (Eljelly, 2004), (Rao 1989). (Soenen, 1993). (Long and Ravid, 1993; Deloof and Jegers, 1996).