Small and medium-sized enterprises (SMEs) play a crucial role in economic and social development by generating wealth and creating jobs. They have become significant contributors to this development due to the employment opportunities they provide. While the literature on financial economics has extensively explored the relationship between working capital management and profitability in large enterprises, there has been less focus on SMEs. Research into SMEs' working capital management and profitability has not produced conclusive results, highlighting the need for further investigation into new explanations and causal relationships. This study employs the panel data method and finds a positive and significant relationship between investment in accounts receivable and business performance. In contrast, investment in inventory and leverage with suppliers show a negative impact on profitability when measured by ROA and ROE. A major limitation of this study was the lack of market data, which hindered a more precise measurement and analysis of the results.