Efficient working capital management boosts profits for Ghanaian firms.
Efficiently managing working capital is crucial for a company's profitability. A study looked at listed manufacturing firms in Ghana to see how elements like cash conversion cycle, collection period, payment period, and inventory turnover days affect profitability. They found that reducing cash conversion time and increasing payment time can boost profits. Companies should focus on managing their working capital effectively to maintain a balance and improve profitability.