The article explores how managing a company's working capital affects its profitability. By studying 58 small manufacturing firms from 2003 to 2009, the researchers found that investing heavily in inventory and receivables can lower profits. They used variables like inventory days, accounts receivable days, accounts payable days, and cash conversion cycle to measure this. The study also shows that the paper industry has set a good example in working capital management, leading to better performance. Overall, there is a growing trend in using short-term financing for working capital.