Operating Efficiency

The operating efficiency of the magnificence is above an important determinant of the level of working capital. The management can contribute to a sound working capital position through operating efficiency. Although the management cannot control the rise in prices, it can ensure the efficient utilization of resources by eliminating waste, improving coordination, and a fuller utilization of existing resources, and so on. Efficiency of operations accelerates the pace of cash cycle improves the working capital turnover. It releases the pressure on working capital by improving profitability and improving the internal generation of funds.

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