Working Capital Management Efficiency in the Forestry and Logging Sector in Türkiye

This study examines the working capital management efficiency of Türkiye’s forestry and logging sector over the 2009–2024 period using the index method developed by Bhattacharya (1997). The analysis utilizes sector balance sheet and income statement data published by the Central Bank of the Republic of Türkiye. Performance, utilization, and efficiency indexes were calculated to assess both the effectiveness of investments in current asset subcomponents and the degree to which these assets support sales growth. Results indicate that, despite fluctuations observed during certain years, the average values of all three indices for micro-scale, small-scale, and overall sectoral groups exceeded 1 over the study period, suggesting that enterprises in this sector generally managed their working capital efficiently. The highest index levels were reached in 2022, largely driven by a sharp increase in net sales relative to current assets. A comparison with existing research on wood products, paper, and furniture manufacturing sectors demonstrates that the forestry and logging sector exhibits relatively higher working capital efficiency, suggesting a stronger capability to maintain liquidity and support operational performance under changing economic conditions. Given the scarcity of prior research applying the index method to this sector, the study contributes new empirical evidence and demonstrates the suitability of index-based efficiency measurement for sector-level financial data. The results also suggest several implications: enterprises should reinforce cash-flow forecasting, improve monitoring of current asset subcomponents, and adopt scale-appropriate working capital policies. Policymakers may consider supporting micro- and small-scale companies through financial training initiatives and improved access to short-term credit instruments. Future research could incorporate firm-level datasets, expand coverage to medium and large enterprises, and apply alternative efficiency techniques to further validate and extend the findings.