An Overview of the Influence of Working Capital Management on Profitability

Abstract

Working Capital Management is crucial for a company, akin to the company’s life force, enabling it to thrive and survive in the competitive market. In this fiercely competitive world, each passing day holds immense significance in propelling businesses to the next level. This study delves into an analysis of various studies conducted globally over the past few years. Its primary aim is to compile and synthesize the results of these studies, identifying key factors and the impact of maintaining the necessary balance of working capital. Most studies have consistently concluded that a shorter cash conversion cycle yields greater benefits.