Efficient working capital boosts firm profits, revolutionizing financial health.
An efficient working capital is crucial for a company's financial health. This study looked at 100 manufacturing companies in Malaysia to see how well they managed their working capital and how it affected their performance. They found that managing inventory, collecting payments, and converting cash efficiently can lead to higher profits. On the other hand, taking longer to pay suppliers can also boost profitability. In simple terms, better handling of working capital can make a company more profitable.