Laxman Raj KandelRaju Duwadi2025-05-132025-05-132024https://hdl.handle.net/20.500.14540/24986This research paper has been prepared for submission to the office of the dean, faculty of management, for partial fulfillment of the degree requirements. This study adopted casual comparative and descriptive research design with secondary data drawn from the annual reports of a five-star listed hotel in Nepal, covering a period 2013/14 to 2022/23, a total of ten years. This paper explores the influence of various working capital components, such as inventory turnover ratio, receivable conversion period, average payment period, cash conversion cycle, debt ratio, and current ratio, on a hotel's profitability, where profitability represented by return on equity and return on assets. For data analysis, financial tools as well as Pearson’s correlation, and logistic regression were utilized. Findings reveal that inventory turnover days (ITR), average payable period (APP), and cash conversion cycle (CCC) have an inverse relationship with hotel’s profitability, while the average collection period (ACP), debt ratio (DR) and current ratio (CR) show a positively linked.en-USThesis