A key indicator of corporate efficiency may now be better than at any time since the turn of the century.
The net working capital cycle — a key metric that tracks the time it takes a company to convert current assets like inventory into sales and then collect money from customers — has improved markedly. According to data from the Centre for Monitoring Indian Economy (CMIE), it took the average company nearly 90 days to complete this cycle in 1999-2000. Looking ahead to 2023-24, that figure has nearly halved to 47.8 days, based on the latest available data.
While