In today's businesses, not only profitability but also company value and valuation concepts come to the fore. In terms of company valuation, not only profitability but also the cash and cash flow provided by the business's activities become important. Because it will be difficult for a business that cannot generate cash from its activities to maintain its profitability and create value in the long term. In this context, the effectiveness of activities is important. The basic basis for maintaining effective operations is effective working capital management.

In this context, the main purpose of our study is to determine the effect of basic ratios, which determine the effectiveness of working capital management, on free cash flows, which show the amount of cash available to managers for the maintenance of business activities in company valuation. In this context, the relationship between the companies' free cash flows and the ratios determining the effectiveness of working capital was calculated over the years by using the quarterly financial data of the companies traded on the stock exchange in the BIST- Manufacturing Industry / Weaving Industry, Clothing and Leather sector between 2011 and 2022. The results were tried to be determined using the dynamic panel data method. According to the results of the research, a significant relationship was found between receivables turnover, inventory turnover, leverage ratio, Tobin's Q ratio and free cash flows.