There is deterioration in the management of working capital of XYZ Ltd. What does it refer to?

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There is deterioration in the management of working capital of XYZ Ltd. What does it refer to? Answer: That debtors collection period has increased

Deterioration in the management of working capital at XYZ Ltd. refers to poor management of the company's short-term assets and liabilities, leading to issues such as longer periods to collect cash from customers (increased debtor collection period) and an inability to meet short-term obligations, potentially threatening the company's solvency despite accounting profits.

Question context

This question is part of 🌍 Current Affairs within the broader 🌐 Current Affairs & GK subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.