Working capital management

Rarely are firms started for reasons other than profit. In order to improve the effectiveness of their operations, businesses examine a variety of financial metrics. The most significant and prevalent of these indicators are profitability and liquidity indicators.
Profitability is an indicator of a company's economic efficiency. That is, how much profit the invested cash can generate. A company's enormous profits may not necessarily indicate a large margin. The organization's profitability will likewise be low if it generates little profit. The profitability indicator is negative if the business operates at a loss. There are a variety of profitability indicators, which are often computed as the ratio of profit to expenditure of resources. According to the profitability indicator, the efficiency with which a corporation utilises its material or monetary resources is determined (Madushanka & Jathurika, 2018).
Liquidity is a characteristic of an asset that denotes the ability ...

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