This paper seeks to assess working capital management effect on Return on Equity (net income (EAITP)/Equity) of listed manufacturing firms on the Ghana Stock Exchange (GSE). Methodology: The research design employed was descriptive as well as referential analysis. A panel data of thirteen (13) listed manufacturing firms on the Ghana Stock Exchange (GSE) for periods 2010 to 2019 was used for the study. Data which were the audited annual financial reports were accessed from Ghana Stock Exchange Fact Book and the web portals of the firms. Statistical Package for Social Sciences (SPSS, version 20) and Microsoft Excel were used in data analyses and presentations. Descriptive statistics was used to summarize the data in terms of measures of central tendency (mean), measures of dispersion (standard deviation) as well as minimum and maximum values. Pearson’s Product-Moment Correlation and Ordinary Least Square (OLS) multiple regression techniques were employed to establish the relationship and effect of working capital management on Return on Equity respectively. Findings: Results showed that INV has statistically significant and negative correlation with ROE(r= -0.287 and p<0.05) as AR and ROE have statistically significant and negative correlation(r= -0.287, p<0.05). AP also has statistically significant and negative association with ROE(r= -0.407, p<0.05). The regression analysis showed that INV has a negative (β = -.01) and significant (p<0.05) effect on ROE as AR also has a negative (β = -.002) and significant (p<0.05) effect on ROE. Again, AP has negative (β = -.002) but insignificant (p>0.05) effect on ROE as CCC has statistically significant (p<0.05> and negative (-0.021) effect on ROE. Also, R and R-Sq. showed 59.5 % and 35.4% respectively, implying that the model is fit for predicting the criterion variable at any given levels of the predictor variables. Contribution to theory, practice and Policy: This work adds to working capital management literature by adopting ROE (Net Income (EAITP)/Total Equity) that responds to call by CFI (2015), and therefore addresses the pitfalls in prior studies. It is therefore a sine qua non for management, policy makers and practitioners to fashion strategies to ensure that working capital is managed to the core by reducing number of days inventory, number of days accounts receivable, number of days accounts payables and cash conversion cycle in order to create wealth for shareholders as well as expand operation of the firms.