Optimizing working capital boosts profits for Croatian companies.
Working capital management affects how profitable Croatian companies are. Researchers studied public joint stock companies from 2000-2005. They looked at the cash conversion cycle and how long it takes to get paid, pay bills, and sell inventory. The study found a clear link between how well a company manages its working capital and how much profit it makes. This shows that managing working capital efficiently is crucial for making money in a company.