Business, Management and Accounting
5 years ago

Optimizing Working Capital Boosts Profits and Market Value for Companies

International Journal of Monetary Economics and Finance
Static and Dynamic Working Capital Management: the Direct and Indirect Impacts on Profitability and Market Value
Sareeya Wichitsathian

Paper Summary

The study looked at how managing working capital affects a company's performance and value. They split working capital management into static and dynamic parts and studied 381 companies in Thailand. By analyzing data from 2013 to 2017, they found that having a high current ratio and short cash conversion cycle can lead to increased profitability and market value.

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