The Impact of Working Capital Turnover on Jordanian Chemical Industries’ Profitability

Abstract

The chemical industry is of long-term importance to the maintain development of local economies and consider the largest industrial sectors in Jordan in terms of the exports volume which accomplished JD 1049000S in 2012. Working capital considers being a measure of company’s efficiency and its short-term financial health; moreover, it is a critical component for a business survival and a main item for the hall boost in profitability. While Chemical Industries plays a vital role in Jordanian economic and compose a large portion in the total local output; this study conduct to approve the impact of capital turnover as a measure of efficiency on Chemical companies’ profitability expressed by Return On Assets (ROA). A simple liner regression applied to test a period 2009-2011 in order to conclude the extent of the impact of working capital turnover on Jordanian Chemical industries’ profitability through Return On Assets (ROA). The study showed a significant impact of independent variable working capital turnover on dependent variable return on assets among Chemical Industries listed on Amman Stock Exchange during the period from 2009 to 2011.