IMPACT OF WORKING CAPITAL MANAGEMENT ON A FIRM’S PROFITABILITY: A REVIEW

Abstract

Working capital management is one of the most critical decisions made by a company's financial management strategies. Working capital management is acknowledged as one of the most vital aspects of business management. The application of investment and finance decisions to current assets is known as working capital management. This article aims to analyze the profitability and financial performance of companies that rely on working capital management. The research papers of several scholars have been examined in this article. The majority of the researchers discovered that working capital management decisions positively influence an organization's profitability. It straightforwardly affects the company's liquidity and profit-making ability. The research looked at the literature on working capital management and its impact on its financial success.