Efficient working capital management boosts financial success for businesses.
Working capital management is crucial for businesses to maintain a healthy financial position. It involves handling cash, debtors, stock, and creditors efficiently. Proper management of working capital can reduce costs and increase returns. The goal is to ensure a company has enough cash flow to meet short-term obligations and expenses. Efficient working capital management can lead to high financial performance. The researchers investigated the efficiency of working capital management through the cash conversion cycle.