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An Overview of the Influence of Working Capital Management on Profitability

Author

Listed:
  • S. Dhanalakshmi

    (S.A. College of Arts & Science)

  • K. Komalavalli

    (Vallal P.T.Lee Chengalvaraya Naickar Arts & Science College)

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.

Suggested Citation

  • S. Dhanalakshmi & K. Komalavalli, 2023. "An Overview of the Influence of Working Capital Management on Profitability," ComFin Research, Shanlax Journals, vol. 11(4), pages 39-42, October.
    • Handle: RePEc:acg:comfin:v:11:y:2023:i:4:p:39-42
    DOI: 10.34293/commerce.v11i4.6696
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    References listed on IDEAS

    as
    1. Abdul Basyith & Abid Djazuli & Fitriya Fauzi, 2021. "Does Working Capital Management Affect Profitability? Empirical Evidence from Indonesia Listed Firms," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(3), pages 236-251, March.
    2. Abdul Basyith & Abid Djazuli & Fitriya Fauzi, 2021. "Does Working Capital Management Affect Profitability? Empirical Evidence from Indonesia Listed Firms," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(3), pages 236-251.
    3. Jaroslav Mazanec, 2022. "The Impact of Working Capital Management on Corporate Performance in Small–Medium Enterprises in the Visegrad Group," Mathematics, MDPI, vol. 10(6), pages 1-19, March.
    4. Ala’a Adden Abuhommous & Ahmad Salim Alsaraireh & Huthaifa Alqaralleh, 2022. "The impact of working capital management on credit rating," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-20, December.
    Full references (including those not matched with items on IDEAS)

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