Studies on corporate finance generally focus on main decisions like capital structure, dividend and capital budgeting. These issues imply the study of long term financial decisions and have been receiving greater attention from researchers. Working capital is also an important component in companies’ financial decision making. Firms may have an optimal level of working capital that maximizes their value. The purpose of this study is to investigate working capital management practices: a study of select firms in Ethiopian. To achieve the purpose of the study, 81 large tax payers firms were selected from different economic sectors out of 703 large tax payers firms. For the selection of the sample firms from the target population, purposive sampling technique was adopted. The present study is used primary data sources. The primary data were collected by survey questionnaire and interview and the To analyze the collected data, mean, standard deviation and ANOVA were carried out using SPSS 20.The primary result showed that all managers and managerial accountants responded to most of the cash management practices as highly required for the effective operations of the sampled firms. Some of the cash management practices which they highly require include: maintaining optimum cash balance; managing cash inflows, having sound cash planning policies; investing excessive cash; monitoring cash out flows. The analysis from the primary data of accounts receivable showed that Ethiopian firms did not give due attention on formulating policies for guiding accounts receivable, they did not reviewing accounts receivable policies from time to time and managing accounts receivable turnover ratio and resulting bad debt. It was concluded that all the managers and managerial accountants responded that they were not using the different inventory control techniques, thus all managers should use material requirement planning (MRP), Economic Order Quantity (EOQ), Justin- Time (JIT), Economic production quantity (EPQ) and supply chain management to ascertain inventory level as a practice for effective operations of their firms.