Optimizing working capital boosts financial performance for water processing firms in Somalia.
The study looked at how managing money and inventory affects the financial success of water companies in Puntland, Somalia. They studied four companies in Garowe over four years. They found that managing cash and inventory well can improve a company's financial performance. However, managing how much money customers owe the company can actually hurt financial success. Managing how much the company owes others doesn't seem to affect financial performance. The study suggests that the business environment in Somalia might make these results different from other places. The researchers recommend studying more water companies in Somalia and looking at other types of companies too.