**1. Introduction**

Working capital, which represents the current assets of firms, is one of the main factors affecting business objectives such as profitability and liquidity. The fulfillment of payment obligations,

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© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons

increasing operating volume, and providing superiority to the competitor firms are closely related to working capital management. In fact, working capital management is not only limited to managing short-term assets but also involves short-term liabilities.

Working capital consists of cash and cash equivalents, receivables, and inventories. There are also many factors that influence working capital and its components; therefore, businesses need to be cautious in such decisions and should make detailed analyses. Working capital components' contribution to the purpose of the companies depends on the optimum management of it. In emerging markets where there are insufficient saving volume and capital accumulations, and inadequate financial market depth and financial product diversity are the main problems, working capital management is becoming more important.

This study has been done on mining sector firms in Turkey, which is one of the developing countries, in order to show the relationship between the components of working capital and profitability. In theoretical part of the study, literature review, importance of working capital management in emerging markets, and also general properties of mining companies are handled. In empirical part, panel data analysis is carried out 2009Q4–2015Q3 in mining sector, which is a strategic sector especially for the developing countries. The conclusion section includes a general evaluation and results.
