Optimizing working capital boosts profitability in Indian steel industry.
Working capital is the money a company needs for its daily operations. It's like a revolving fund that keeps cash flowing through different stages of business activities. The study looked at how working capital affects the profitability of Indian steel companies. They found that having the right amount of working capital is crucial for a company's success. By talking to accounting experts from 10 steel companies, they learned that companies need to balance their desired and actual levels of working capital to stay profitable.