The main objective of the study was to find whether financial ratios affect the performance of the companies in the special context of cement industry in Pakistan. This study empirically examines the relationship between working capital management and profitability by using data of 10 Pakistani cement companies listed on Karachi Stock Exchange. The study is based on secondary data collected from financial reports of the sample companies for a period of five years from 2009-2013. The data was analyzed using the techniques of correlation coefficient and multiple regression analysis. All the findings were tested at 0.01 and 0.05 level of significance. We found that the return on equity (ROE) is negatively correlated with the Cash Conversion Cycle (CCC), current ratio (CR), and inventory turnover in days (ITD). While ROE is positively correlated with the Gross Working Capital Turnover (GWCT), Quick Ratio (QR), Average Payment Period (APP), Size of firms (LNSALES), and Funds allocated by government in Public Sector Development Program (LNPSDP). The relationship of Current Ratio is insignificant with ROE, but the relationship is not conclusive.