Browsing by Author "Karunarathne, W.V.A.D."

Now showing 1 - 20 of 23

Accounting for goods sold with a right to return
(Department of Accountancy, University of Kelaniya, 2014) Jayarathna, H.P.S.M.; Karunarathne, W.V.A.D.
Determinants of Firm Performance; With Special Reference to Commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Senanayaka, S.M.D.J.; Karunarathne, W.V.A.D.
Study was to discover the determinants, which affect to the profitability of Commercial banks in Sri Lanka. In the economy that the financial system is, important criteria and commercial banks are playing a key role under the financial system in the economy. The purpose of this study is to identify the determinants of the firms’ performance of commercial banks in Sri Lanka. There are many factors, which affects to the performance of commercial banks. In this study, it pays attention on the internal factors, which affects to commercial banks’ performance. The study has used Return on asset (ROA) and Return on Equity (ROE) alternatively to identify the banks’ performance. Capital Adequacy, Financial Leverage, Number of Branch and Liquidity ratio were considered as independent variables of the study. Secondary data of eight (08) listed commercial banks over 10 years were selected to the sample of the study. Correlation and Regression analysis were performed to analyzed data of the study. Constructed two models were used as alternative models. According to first model, that Capital Adequacy ratio, Debt to Equity ratio, Number of branches and the Liquidity assets ratio significantly affected the Return on Assets (ROA). According to the second model, that Capital Adequacy ratio and the Liquidity Assets ratio were significantly affected on Return on Equity (ROE) and the Debt to Equity ratio and the Number of branches were not affected on ROE significantly.
Determinants of Non-Performing Loans in Listed Commercial Banks in Sri Lanka: A Comparison between Pre- and Post-Covid-19 Period
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Kaushalya, R.D.A.; Karunarathne, W.V.A.D.
The Listed Commercial Banks in Sri Lanka play a critical role in the economy. They handle financial intermediation processes. The study attempts to investigate the factors affecting non-performing loans (NPLs) of Listed Commercial Banks in Sri Lanka and how COVID-19 impacts non-performing loans (NPLs) of Listed Commercial Banks by using twenty Listed Commercial Banks. This study employed a quantitative deductive approach by using secondary data such as annual reports of selected Listed Commercial Banks from 2013 to 2022 based on annual reports and other statistical reports of the Central Bank of Sri Lanka. The study decided to collect data from all listed commercial banks in Sri Lanka but since the data unavailability were considered the twenty listed commercial banks in Sri Lanka. The dependent variable is non-performing loans and the independent variables include macro-economic and institutional-specific factors. Based on the literature, this study has used the size of the company, return on assets (ROA), capital adequacy ratio (CAR), and efficiency are considered as institutional-specific factors, and gross domestic products, inflation rate, interest rate, and unemployment rate are considered as macro-economic factors. The impact of macroeconomic and institutional-specific factors on non-performing loans was observed through multiple regression models. According to the findings, bank size, CAR, GDP, and inflation have a significant relationship with non-performing loans. However, it found that ROA, Interest rate, efficiency, and unemployment rate have no significant relationship with non-performing loans. When comparing pre- and post-COVID-19 periods, COVID-19 has a significant impact on NPLs. The results of this study will be beneficial for the management of the entire banking sector including public and private banks as well as current customers, potential customers, future researchers, and also policy makers.
Evaluation of group lecturing method and individual lecturing method: undergraduates’ perspective
(University of Kelaniya, 2008) Ranjani, R.P.C.; Karunarathne, W.V.A.D.; Weligamage, S.S.
Evolution of Marketing Methods towards the Omnichannel Marketing: Understanding the Journey through a Literature Review
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Liyanage, N.N.; Medis, L.A.P.; Karunarathne, W.V.A.D.
Appreciating the massive evolvement of internet-based technology which has made massive changes to marketing methods globally, the purpose of this study is to identify the impact of omnichannel marketing on generating the revisit intention on the fashion store brands in Sri Lanka. Within marketing management jargon, consumer revisit intention (RI) was being studied widely and it has proved that retaining customers is more advantageous than attracting new, because it would require less marketing resources to retain customers than inviting new ones. As the marketing methods have aged, changed, evolved so is the consumer's thinking, expectations behavior, and intentions. From radio to newspapers, television to social media, marketing has transformed with the mediums over the past several decades. Particularly social media which is the most recent development has changed marketing in several different ways. Social Media has completely transformed the consumer's lifestyles including how they interact with business organizations. Nowadays customers expect proactive service, personalized interactions, and connected experience. Therefore, various integrated marketing methods came to practice and latest of them being omnichannel marketing. In omnichannel marketing it suggests the integration of all physical channels (offline) and digital channels (online) to offer a unified customer experience. In this paper, the literature related to the evolution of the marketing communications used by the practitioners from early dates to today will be analyzed and discussed to identify the attributes, features of different marketing communication methods used in different eras and theories and consumer behavior and expectations that developed and shifted together with the development of the marketing communication.
Factors Influencing the Usage of Credit Cards: With Special Reference to Customers in Private and Government Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Ishara, D.P.A.; Karunarathne, W.V.A.D.
The credit card has developed into one of the most accepted, convenient and profitable financial products around the world. Many of consumers and merchants in the world accept it as a routine means of payment for all variability of products and services. This study is a quantitative research aimed to recognize the factors affecting for usage of credit cards with special reference to Private and Government banks in Sri Lanka. Researcher selected 200 credit card holders among selected five banks as the sample and mainly used the primary data for this study. Primary data was gathered from structured questionnaires. Data were evaluated through descriptive statistics, correlation analysis and multiple regression analysis. According to the results of the study, awareness, cost, credit limit and socio psycho attitudes was found to be significantly influence on credit card usage. Bank functions are not significantly influence on credit card usage. Awareness was the highly influential factor for usage of credit cards. This research will be helpful for the credit card issuing banks to design marketing and promotional strategies in order to progress their credit card portfolio as well as obtaining high portion in the credit card market.
The Impact of Credit Risk Management on Performance of Commercial Banks
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Navoda, G.N.; Karunarathne, W.V.A.D.
Banking industry is one of the largest sector in current world, with branches and subsidiaries throughout everyone’s life. However, commercial banks are facing risks when they are operating. Credit risk is the one of the significant risk that banks face, considering that granting is one of the main source of income in commercial banks in Sri Lanka. There for the management of the risk related to that credit affect the Performance of the banks. The main purpose of the research is to investigate if there is a relationship between credit risk management and Performance of commercial banks in Sri Lanka. Research model, ROE and ROA are measurement tools of Performance and CAR, NPLR, LR and CIR are defined as tools of credit risk management. The population of this study is 24 commercial banks in Sri Lanka, and 11 commercial banks will be identified as the sample. The analyze has been made the credit risk management and its impact on profitability capacity during 2006 to 2015 (10 years) financial year of commercial banks in Sri Lanka. The research data will be collect from annual reports of sample banks. Correlation and multiple regression analysis are used for analysis. The findings reveal that positive relationship between credit risk management and performance. And also credit risk management is significant impact on performance of commercial banks in Sri Lanka.
Impact of Dividend Policy on Financial Performance: With Special Reference to the Listed Hotels and Travelling Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Padmashantha, K.G.D.; Karunarathne, W.V.A.D.
The primary purpose of the study is to examine the impact of dividend policy on financial performance of companies in Sri Lanka. This study has selected twenty listed hotel and travelling companies in the Colombo Stock Exchange (CSE) to the sample from the listed hotel and travelling companies in the CSE on random basis. Secondary data were used to the study and the dividend and performance related data were gathered through annual reports of hotels and travel companies for the period of 2010 to 2015. Net Operating Cash Flow (NOCF), Book Value of Equity (BVE), Price Earnings Ratio (PER) and Dividend Payout Ratio (DPR) were selected as independent variables. Dependent variable of the study is Financial Performance, which measures by using Return on Assets (ROA). Descriptive statistics, Correlation analysis and Regression analysis were applied for analyzing data. The results reviewed that dividend payout is significantly correlate with the ROA. However, NOCF, BVOE and PER is correlated with ROA. The regression results show that all the independent variables have a significant impact on ROA. Study found that regular dividend policy and irregular dividend policy affect to the financial performance. Finally, the study represented, that dividend policy affects to the financial performance of hotel and travelling companies listed on CSE in Sri Lanka.
Impact of Firm Specific Factors on Stock Market Prices: A Study of Listed Hotel & Travels Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Manoji, L.P.; Karunarathne, W.V.A.D.
The impact of firm specific factors on stock market prices is one of a popular area in Accounting Based Capital Market Research. Investors desire to buy shares of listed companies in Colombo Stock exchange (CSE) to maximize their wealth. Therefor share prices are very important one to investors and other related parties. The objective of present study is to provide empirical evidence on the impact of firm specific factors on the stock market price in listed hotels and travels companies in Sri Lanka. The study sought to examine by using the selected listed hotel & travels companies in the CSE during 2010 to 2015. Secondary data were collected from the annual reports of the hotel & travels companies and used random sampling method by selected the sample for the study. These data were analyzed using SPSS software through descriptive and inferential statistics such as measuring central tendency & dispersion, Correlation analysis and Regression analysis. The findings are indicated that a significant positive impact of dividend per share and book value per share on stock market prices. There is a significant negative impact of return on equity and dividend yield on stock market prices. Hence the study will be concluded that firm specific factors are important and also affecting on companies’ stock market price.
The Impact of Job Satisfaction and Organizational Commitment on Employee Turnover Intention: With Special Reference to Corrugated Box Manufacturing Industries in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Batagoda, S.D.; Karunarathne, W.V.A.D.
During the past decade employee turnover has become a very serious issue for many organizations in the business world and it has negatively impacted on the growth of the manufacturing sector as well as service sector. Managing retention of employees and keeping the turnover rate below the industry level is one of the most challenging issues for any organization. Recent studies reveal that 81% of current employees are interested in changing their jobs within next 12 months. The purpose of this study is to examine and find out the influences of job satisfaction and organizational commitment on employee turnover intention in a corrugated box manufacturing industries in Sri Lanka. Questionnaire method was used to collect data from 240 employees in five main corrugated box manufacturing companies in Sri Lanka. Both descriptive and inferential statistical techniques were applied to analyze the data. Percentage analysis was used to explain data. Kolmorogov-Sminar test and Shapiro-Wilk test used to test the normality of turnover intention. It was revealed that the distribution of that data is non-normal. Hence the Spearman rank Correlation Coefficient was applied to measure the relationship between independent variables and dependent variable in this study. The results of the research highlighted that there is a weak negative relationship between job satisfaction and employee turnover intention and it is statistically significant at 0.05 level. The relationship between organizational commitment and employee turnover intention is also weak negative and it is statistically significant at 0.05 level. This finding can be applied to prepare a strategy for retaining employees within the organization.
The Impact of Sri Lanka Financial Reporting Standards (SLFRS)-16) on Key Financial Ratios of Listed Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Induranga, P.D.R.; Karunarathne, W.V.A.D.
SLFRS sets out new rules for the recognition and measurement of leases in an organization. The introduction of the new standard removes the lessee's distinction between operating and finance leases, leading to an increase in leased assets and financial liabilities on the statement of financial position or balance sheet of the lessee. Hence, companies with material off-balance sheet leases will encounter significant changes in their key financial metrics. Several prior studies have investigated the potential impact on financial metrics due to the change in the new lease standard of SLFRS 16. By reviewing the previous studies thoroughly, they have revealed mixed results. Accordingly, some studies showed that significant deviations from the financial indicators and some studies had tested the impact of operating lease capitalization on investor decision making. Therefore, the present study aims to analyze the potential impact of operating lease capitalization on listed companies' key financial ratios in Sri Lanka using an advanced constructive capitalization method. This research examines the lease capitalization effects on companies' financial ratios listed on the Colombo Stock Exchange in the year 2018. The comparative model examines the change of a company's financial ratios in the sample before and after the capitalization of operating leases. The research findings intend to extend the scope of regulators and standard setters by requiring companies to disclose their operating lease. Additionally, it will increase the benefit of information on operating lease in decision making. Further, it will reduce the accounting practices that hide debts by voluntarily disclosing the present value of lease commitments in notes to the financial statements.
Implementation of an Online Results Issuing System in the Faculty of Commerce and Management Studies, University of Kelaniya
(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Ranaweera, H.R.M.P.; Fernando, P.N.D.; Karunarathne, W.V.A.D.
The Faculty of Commerce and Management Studies of the University of Kelaniya, has implemented a Student Information System that is capable of handling complex administrative processes; from student registration to the issuing of final examination results. This will immensely benefit the students and the staff alike and will help streamline the processing of information. Currently student examination results are handled by a central location and marks are fed into the system by a single user in the Faculty Office. This is a time-consuming endeavor and tends to create a lot of inefficiencies and has limited data retrieval capabilities. This process not only delays the issuing of the results, but also has no traceability if needs arise for tracking for any errors or duplicity. Also, the current system possesses no method of retrieving data for research purposes and decision-making purposes for academics and administrators. This manual process causes prolonged turnaround time, unnecessary document transferring, inability to track delays, complications in data entry and report dispatch. A newer mechanism was required to address the issues faced. Efficient data retrieval for research purposes and decision making was also considered important. The objective was to design, develop and implement an online result issuing system that would benefit diverse parties: students, staff, administration and the environment. Data entry will be done by the examiners themselves, right after the marking of papers; ensuring data integrity in order to overcome unnecessary delays and errors. Further this will permit progress tracking for top management. The efficacy, transparency and ability to avoid human error and delays would support decision making by enabling the top management to analyze the time taken, quality and quantity of work done by the students as well as the examiners. Furthermore, the students would experience the convenience of accessing their results as soon as they have been issued whether they are present at the university or not. In addition to seeing the final grading for the relevant semester, they would be able to self-evaluate their academic performances based on the report they can view indicating their semester GPA through four years in a graph. Additionally, this online system would prove to be environmentally friendly with the reduction of paper printing. This web-based application was developed using open source scripting languages and databases: PHP, HTML 5, CSS, JavaScript, Ajax and MySQL. The system is hosted on the faculty premises and available 24/7 from anywhere. The system supports both windows and Mac operating systems via desktop and mobile devices and is accessible on IOS and Android devices, using any commonly used modern web browser with use of a log-in. This would mean the staff and student would no longer require a complex processes and lengthy timelines for the issuing of examination results
Inappropriate Recognition of PPE
(Department of Accountancy, University of Kelaniya, 2016) Dissanayake, D.M.N.P.; Karunarathne, W.V.A.D.
LMN Company is a leading company which operates in the manufacturing industry. The company manufactures and sells aluminum extrusions. Sales of the company are carrying out by sales outlets and dealers, and also the company export the extrusions as well. The company manufactures extrusions in their own manufacturing plants, therefore the company possesses significant amount of non-current assets which are categorized in to various classes of assets. The company require huge amount of power to operate their machines. They can’t satisfy with the electricity supply which received from general electricity line. Therefore LMN Company has established a transformer in their factory premises after entering the agreement with Ceylon Electricity Board (CEB).
Internet usage amongst Commerce and Management undergraduates: a study based on University of Kelaniya
(University of Kelaniya, 2008) Karunarathne, W.V.A.D.; Weligamage, S.S.
Leadership and Innovation on Firms’ Performance with the Moderation of Competitive Rivalry: A Study on Large Export Manufacturing Firms in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Jayasekera, J.A.W.M.; Karunarathne, W.V.A.D.; Semasinghe, D.M.
The purpose of this paper is to empirically investigate the effects of Leadership Management Style (LMS) and Innovation (INV) on Firms Performance (FP). Whist this study proposes to examine the mediating role of Innovation (INV) in the relationship between LMS and FP in large export manufacturing Firms in Sri Lanka. Further the study will examine the moderating effect on Competitive Rivalry (RVLRY) in the relationship between LMS and INV. Using a sample of 453 large export manufacturing companies in Sri Lanka and “C” level managers were chosen in and data collected through a questionnaire developed using google form and structural equation modeling was used using AMOS. The results reveal that LMS has a significant impact of Firms performance (FP) and the Innovation (INV). The results also indicate that RVLRY has a moderating impact of relationship between LMS and INV. Findings of this study reinforce the leadership on Innovation and improved firms’ performance both financial and non-financial aspects. In addition, leadership role plays a significant role in a competitive environment to innovate and perform. This is one of the earliest studies on Leadership Style on Innovation and Firms’ performance when there is a moderating impact of completive Rivalry in the large export manufacturing category of firms in Sri Lanka.
Macroeconomic determinants of stock market return with special reference to the Colombo Stock Exchange (CSE)
(Research Symposium 2010 - Faculty of Graduate Studies, University of Kelaniya, 2010) Karunarathne, W.V.A.D.; Ranjani, R.P.C.; Kumari, P.W.N.A.
The linkage between macroeconomic variables and the movement of stock prices for developing countries have been widely discussing topic in research arena. CSE is one of the top performing markets in Asia with an average annual index growth rate of 27% and currently it shows the continuous upward trend. There for this study explores the association between selected macroeconomic variables and sectorial indexes. Since it would be almost impossible to incorporate every potential aspect to explain the stock market behavior we limit our study to the selected monthly macro economic variables such as inflation rate (IR), three months treasury bill rate (TBR) and exchange rate US$ =LKR (ER) for the period of 5 years from 2005 to 200and we select five sectors in CSE as proxy for represent all twenty sectors. Those are Banks Finance and Insurance (BFI), Diversified Holdings (DH), Hotels and Travels (H&T), Telecommunications (Telecom), and Trading. Collected data were analyzed using the SPSS software and Stepwise regression analysis was applied to test for the linkage. Upon testing stepwise regression analysis we show that changes in CSE sectorial indexes do perform a significant relationship with, IR, TBR, and ER. Coefficient of determination (R2) for BFI, DH, H&T, Telecom, and Trading are 60%, 50%, 60%, 68%, and 42% respectively. All the three variables are significant at 1 % level for all the sectors except DH and Trading. Another important finding was ER doesn't make significant influence on the sectorial indexes in DH and Trading. An overall finding concludes that Colombo Stock Exchange is sensitive to changes in the macroeconomic variables. It is hoped that the finding of this study would provide some meaningful insights to the body of knowledge, policy makers as well as the practitioners.
Measuring the Revenue in an Agency Relationship
(Department of Accountancy, University of Kelaniya, 2016) Divassini, P.; Karunarathne, W.V.A.D.
Today, the corporate sector is well established in producing and delivering different types of products and services in each industry. Nowadays, entities highly engage into agency transactions related to revenue. Realistically, it is very challenging concept to determine when and whether to recognize the revenue in the financial statements or not. SB Limited is a prominent building construction company in Sri Lanka. It is engaged with contractual agreements with customers as well as with subcontractors. As to the customers’ requirements, SB Limited designs the building and the interior settings. During the process of construction, SB Limited hires DP Limited to fabricate the interior settings for the designed building by engaging into the legal contract called as “Letter of Award” which demonstrates that “DP Limited satisfies the finishing performance obligation of the project on behalf of SB Limited by receiving a fixed rate of commission on the total contract value.”
Measuring Value Creation: Financial Value Drivers vs. Non-Financial Value Drivers
(International Conference on Business and Information (ICBI – 2019), [Doctoral Colloquium], Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2019) Wanigasekara, W.A.D.K.J.; Weligamage, S.S.; Karunarathne, W.V.A.D.
Value creation of a business organization may perhaps be recognized as the strategic purpose of doing the business in the contemporary business domain. Identifying and quantifying what value is created and how much value is created become the foremost tasks in the value creation process of the business organizations. When identifying and quantifying value created by a business organization, the measurement tools of value creation play a pivotal role in the mechanism of measuring value creation of the business organization. The value creation literature provided number of evidences on the measurement tools of value creation or in other words, value drivers to identify and quantify the value creation of a business. Either financial and non-financial measurements or value drivers have been identified in that scenario by the scholars in the value creation arena. However, none of them has explored the possibility of merging both financial and non-financial value drivers in identifying and quantifying the value created by a business. Therefore, there is a problem to address that, whether both financial and non-financial value drivers of value creation can be linked together to identify and quantify the value creation of a business. Hence, the purpose of this study is to explore the possibility of merging financial and non-financial value drivers to identify and quantify the value creation of a business organization. To achieve the purpose, 83 number of research articles from 1998 to 2018, which mentioned the ‘value creation’ as a keyword in the article title, have been reviewed and different financial and non-financial value drivers have been identified. It has been suggested that, a model for identifying and quantifying the value creation by linking some financial and non-financial value drivers together.
The Relationship between Working Capital Management and Firms’ Performance: A Comparative Study between Manufacturing and Plantation Companies Listed in Colombo Stock Exchange (CSE)
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Athapaththu, A.M.D.K.; Karunarathne, W.V.A.D.
In this study an attempt has been made to identify the relationship between working capital and firms’ performance in listed manufacturing and plantation companies in the CSE and also to test the performance differences between two industries. Cash Conversion Cycle (CCC) is used to measure the working capital as it represents the main aspects of working capital. Payable and receivables and Return on Capital Employed (ROCE) were used as the measure for the firms’ performance. The study is primarily based on the secondary data that were extracted from the annual reports of 22 Manufacturing firms and 18 plantation firms listed in the CSE for the period from 2009 to 2012. The result of the normality test reveals that both the selected samples for ROCE is not normally distributed. Hence non-parametric tests were used to analyze data and it was found that both CCC and ROCE significantly vary from manufacturing firms and plantation firms. Statistical analysis was used to compare the performances between two industries. The results of the study depicted that the performance of plantation firms are lower compared to manufacturing firms and plantation firms operate lower cash conversion cycle compared to manufacturing sector. Spearmen’s Rank correlation coefficient is used to evaluate the relationship between CCC and ROCE. The results revealed that there is a moderate negative relationship between CCC and firms’ performance in manufacturing companies and also it is statistically significant. However, statistical evidence was not sufficient to prove the same for plantation companies. As a recommendation it is suggested that for all manufacturing companies to have a greater focus on working capital management which in-turn contribute to its performance. The industry factors and the opinions of the subject experts were also suggested the same. The study opens up further room for researchers to investigate into plantation industry -working capital with reference to different stages in the plantation life cycle.
A Study on Relationship between Working Capital Management and Firms’ Performance: Comparison between Manufacturing Sector and Food & Beverage Sector in Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Karunarathne, R.M.H.L.; Karunarathne, W.V.A.D.
This study examines the relationship between working capital management (WCM) on firms’ performance and also compare the correlation results in between manufacturing sector and the food and beverage sector firms in Sri Lanka. The goal of WCM is to ensure that the firm is able to continue its operations and that it has adequate cash flows to satisfy both maturing shortterm debt and upcoming operational expenses at minimal costs, and consequently, increasing corporate profitability (Angahar & Alematu, 2014). Though empirical evidence exists on the topic, yet there is an uncertainty in determining the optimum level of WCM, especially in Sri Lankan context. Since WCM may be different from industry to industry, firms have to adopt an appropriate WCM approach which is favorable to particular industrial sector. Hence this study compare the relationship between WCM and the firm’s performance of eighteen manufacturing firms and eighteen food & beverage firms listed in the CSE. Data were gathered from annual reports of the sampled firms for the period 2011-2015. The WCM measured in terms of Inventory Turn-over Days (ITD), Average Receivable Days (ARD), Average Payable Days (APD), Cash Conversion Cycle (CCC) and Sales Growth Rate (SGR) whereas performance was measured by the return on assets (ROA). According to the data analysis, there was a negative correlation between ROA and CCC, ITD, ARD. In addition to that, there was a positive correlation between APD and SGR with ROA. There was a significant relationship between WCM and firms’ performance in manufacturing and food & beverage sector. Keeping an optimal level of liquidity of the manufacturing and food & beverage sector and the value of the managers of companies in the manufacturing and food & beverage sector will have to increase the value of the firm thereby controlling the level of optimal working capital position.