Аннотация
Working capital management (WCM) is an important aspect offinancial management to ensure efficient use of current assets and liabilities tobalance between profitability and liquidity. Even though there is no absoluteperfect answer, financial managers need to formulate a proper strategy for theworking capital. WCM in the oil industry is particularly important due to thefollowing reasons; a) There is a huge demand for its products, b) Oil and itsproducts are key inputs for other manufacturing industries, c) Oil prices are toosensitive to political, social and economic factors, d) Crude oil extractioncapacity periodically changes. Therefore, firms in this sector need to haveflexible production levels so that they keep a balance between the purchase ofcrude oil and sales of processed oil. A multiple OLS regression method wasapplied to examine the effect of WCM on profitability in the Oil Industry. Thedata contained 231 observations from 21 oil companies listed on NYSE andKASE between 2010 and 2020 years. Findings indicated that downstream oilcompanies need to focus more on the management of credit policies, debtmanagement, and fixed assets management.