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