Efficient Working Capital Management Boosts Profits for Trading Companies
The study looked at how managing money in a business affects how much money it makes. They studied 15 US trading companies from 2015 to 2019. They found that getting paid faster helps a business make more money. Also, taking longer to pay bills can make a business more profitable. Lastly, if a business can speed up how quickly it turns inventory into sales, it can make more money. The study showed that these factors explain 58.4% of the variation in how profitable a business is.