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the effect of working capital management on corporate profitability has been studied significantly by different investigators deloof 2003; filbeck and krueger 2005; lazaridis and tryfonidis 2006; padachi 2006; samiloglu and demirgunes 2008; shin and soenen 1998; tewodros 2010 most of these and other researchers detect significant connotation between competence in working capital management and firms performance. However almost all these trainings concerted on huge organizations working within advanced money and capital markets. From these findings it is problematic to take a broad view for quite small size Ethiopian companies that work within an undeveloped financial sector with imperfect financial markets wherever firms mostly obtain funds for asset in working capital from proprietor

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