The main purpose of this study is to test empirically the impact of working capitalrnmanagement on profitability .To investigate this relationship between these two,rnthe author collected secondary data from 19 manufacturing share companies inrnAddis Ababa, Ethiopia for the period of 2010 to 2014.rnAccounts receivable period, inventory holding period and accounts payablernperiod are used as independent working capital investment policy variables.rnMoreover, cash conversion cycle and current assets to total assets ratio are usedrnas comprehensive measures of working capital investment policy. On the otherrnhand, current liabilities to total assets ratio is used as measure of workingrncapital financing policy. The regression results show inverse relationshiprnbetween accounts receivable and inventory holding periods with profitability.rnHowever there is statistically insignificant relationship between accountsrnpayable period and profitability. The results also show that there existsrnsignificant negative relationship between cash Conversion cycle and profitabilityrnof the sampled firms. In addition to that there is significant positive relationshiprnbetween current assets to total assets ratio and profitability measures has beenrnobserved. On the other hand, results show that a significant positive relationshiprnbetween current liabilities to total assets ratio and profitability.rnTo be profitable, firms must try to keep these numbers of days account receivablernand inventory turnover days to minimum level. This also helps to minimal therncash conversion cycle also. Since aggressiveness of working capital managementrninvestment policies is inversely related to profitability, and aggressive investmentrnpolicyrnpositivelyrnmanufacturingrnrelatedrnsectorrnwithrnshouldrnprofitability,rnthernfollow conservativernfinancialrninvestmentrnaggressive financing policy in their working capital management