G., Abebaw (PhD)Nega, Demelash2021-09-012023-11-042021-09-012023-11-042021-05http://etd.aau.edu.et/handle/123456789/27773The aim of this paper is to study the effect of working capital Management on performance of public enterprises owned by Ethiopian Government. Previous related studies did not cover the state-owned enterprises as part of their study and thus unable to explain the matter. Thus, the study fills this gap. This study used Return on Asset (ROA) as a dependent variable while cash conversion period, accounts receivable days, inventory conversion period, current asset to total asset, current Liability to total asset and firm’s size were used as an independent variable. The data were collected from eight companies for five years between 2013 to 2017 and Eviews 10 is used to analysis the Ordinary least squire (OLS) regression. The key findings are, account receivable days, account payable days, current Asset to total asset and firm’s size resulted significantly and positively affected the profitability. This means that the companies need to keep their account receivable days, account payable days, current Asset to total asset and firm’s size at higher level to be profitable which eventually help them manage their working capital properly.enWorking capital, Return on Asset, Profitability, Public enterprisesThesis