The Impact of Working Capital Management on the Profitability of Dutch Bangla Bank Limited (DBBL): A Comparative Analysis

Abstract

A financial“institution must assess the impact of working capital management on profitability to decide the relative position of earnings over time In order to identify which time periods are more realistic in terms of profitability and working capital management this study evaluates Dutch Bangla Bank Limited's (DBBL) working capital management impact on profitability from 2009 to 2014 and 2016 to 2021 A variety of Dutch Bangla Bank Limited (DBBL) annual reports serve as the only main source for the study's secondary data In this study contrast return on networking capital which is considered a dependent variable quick ratio return on equity and return on assets are viewed as independent factors Data are evaluated using informative statistics T-test correlation and ANOVA Test (Multiple Regression Analysis) Those test results demonstrate that return on equity has no effect and effect is so negligible on the return on net working capital from 2009 to 2014 and from 2016 to 2021 whereas the return on assets has a significant positive impact on net working capital from 2009 to 2014 and from 2016 to 2021 Additionally the current ratio has no impact on the return on net working capital from 2009 to 2014 but it has a very beneficial impact starting in the years 2016 and 2021 The 2015–2021 phase had more changes in current ratio return on equity and return on working capital than the 2014–2014 phase did The 2009–2014 period saw more strategic and careful working capital management than the 2015–2021 phase