Optimizing working capital boosts profits and ensures financial stability for firms.
The goal of the study was to see how managing working capital affects a company's profits and ability to pay its bills on time. The researchers looked at how much money companies put into working capital compared to their total assets, and how efficiently they used that money. They found that having the right amount of working capital can help a company make more money, and that it's important for companies to use their working capital wisely.