The purpose of this study was to evaluate the effect of working capital
level and liquidity on the profitability of the companies listed in Tehran
Stock Exchange. To this end, a total of 84 companies were chosen during
2003-2010.CGS is used in this study as the working capital index and
current ratio is used as an indicator of liquidity and the impact of
liquidity and the amount of working capital on the profitability was
studied in 1 main hypothesis and 2 secondary hypotheses. To test the
hypotheses, multiple regression was used. Results show that the amount
of working capital and liquidity affect the profitability of firms in
different industries, and these results are fixed in the timeframe being
investigated.
