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Analysis of Working Capital Managemen and Its Effect on Firm Profitability

Year: 2025

Type: article

Abstract: Working capital management (WCM) involves the control and optimization of a company’s current assets and liabilities, such as inventory, accounts receivable, accounts payable, and cash balances. It plays a vital role in a firm’s liquidity, operational efficiency, and financial health. The purpose of this study is to analyze working capital management and its effect on firm profitability. This literature review has examined the relationship between working capital management (WCM) and firm profitability by synthesizing findings from various empirical and conceptual studies. The evidence consistently indicates that effective WCM plays a critical role in enhancing a firm’s financial performance.

Source: Journal of Economic Bussines and Accounting (COSTING)

DOI: 10.31539/costing.v8i3.15339

Author: Klemens Mere

Institution: Universitas Wisnuwardhana Malang

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4411295567

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