Working capital management impacts profitability of listed companies in Pakistan.
The study looked at how well companies in Pakistan manage their working capital to see how it affects their financial performance. They used data from 125 listed companies over five years and found that companies with better working capital management tend to have lower profitability. Factors like how quickly they sell inventory and collect payments were important. The size of the company, sales growth, and debt levels also played a role. Overall, the study showed that companies with better working capital management may not always be more profitable.