Working capital management affects how profitable companies are. A study in Malaysia looked at how different aspects of managing working capital impact profits in the services and manufacturing sectors from 2006 to 2010. They found that for services firms, reducing accounts receivable and cash conversion cycle can boost profits, while increasing inventory levels also helps. Services firms tend to invest more aggressively in working capital, which improves profitability. For manufacturing firms, reducing accounts receivable is key to increasing profits, while other working capital components don't have a significant impact.