From 2017 to 2019 nine indigenous owned banks have collapsed and were consolidated by the Bank of Ghana. Most of these banks reported profitability and won awards with them but were receiving liquidity support from the Bank of Ghana. This study aimed to examine the relationship between working capital and profitability of 25 commercial banks in Ghana from 2016-2018. A panel data methodology was used. The data were obtained from the Bank of Ghana to study the correlation between working capital and profitability. The liquidity ratio of current ratio and cash ratio represented working capital management, and profitability was measured by the return on asset of the banks. The findings of the study revealed that there is a small significant negative relationship between working capital management and profitability. This confirms the financial rule of thumb that working capital is inversely related to profitability as high working capital will cause profitability to be low and vice versa. This indicates that higher assets reduce profitability, and increasing debt withdrawal, which further declines the profitability. The study recommends to banks in Ghana to seek equilibrium on working capital and profitability to prevent a possible collapse.