Optimizing working capital boosts profits for food firms in South Africa.
The article explores how managing money and goods affects how much profit food and drink companies make in South Africa. They looked at 12 companies on the stock exchange over 10 years. They found that taking too long to sell goods and collect money can lower profits, but paying bills slowly can actually increase profits. To make more money, companies should aim to keep a good balance between how much stock they have, how quickly they get paid, and how fast they pay their bills.