­ The problem of managing working capital, i.e. net working capital in trade, is very specific, challenging, current, significant and complex. In order to achieve the target financial performance, it is necessary to manage working capital as efficiently as possible. Based on that, this paper analyses the dynamics of size and the impact of net working capital on the profitability of trade in Serbia. In the period 2013 - 2021, in the trade of Serbia, the maximum amount of net working capital was achieved in 2021, the maximum percentage of net working capital from assets was achieved in 2021, the maximum percentage of net working capital from sales was achieved in 2021, and the maximum profitability was achieved in 2021. In the specific case, there is a strong correlation between profitability and net working capital of trade in Serbia. The coefficient of determination is high (Adjusted R Square .941; Sig. F Change .000). The influence of net working capital on the profitability of trade in Serbia is very significant (Sig. .000). This means, in other words, that more efficient management of net working capital can have a significant impact on the profitability of trade in Serbia. Observed dynamically, the amount of net working capital of trade in Serbia has increased recently. This had a positive impact on its liquidity, solvency, efficiency and profitability. Recently, the productivity of trade in Serbia has also increased. The factors that influenced it were: favourable economic climate, foreign retail chains, application of new business models, new concepts of management of costs, income, profit, customers, product categories, application of the concept of sustainable development and digitization of the entire business. ­ Read more