Effect of working capital management and solvency on profitability: Case of bist basic metal sector companies

In this research, effect of WCM (known for optimization of liquidity and efficiency) and solvency on profitability has been analyzed for basic metal sector companies listed in BİST in 2018-2022. This research also includes comparison of financial ratios of companies that had initial public offering in 2022 and companies that had initial public offering before 2022. Research findings show that working capital management has positive effect on profitability, as liquidity has effect on all of the studied profitability ratios. Solvency also has positive effect on profitability, as solvency has positive effect on ROE. No effect of recency of initial public offering (except for account receivable turnover) has been found. This research should not be considered as investment advice.