Explain the determinants of net working capital and the cash conversion cycle. How can these strategies be used in Saudi Arabian companies? Why is working capital so important to a

Working capital management involves managing the firms liquidity, which?in turn?involves managing the firms investments in current assets and in the use of current liabilities.
Explain the determinants of net working capital and the cash conversion cycle. How can these strategies be used in Saudi Arabian companies? Why is working capital so important to a firm when the presence of credit and leverage tend to be utilized more? What advantage does a highly liquid firm have over a highly leveraged firm? Explain.
Embed course material concepts, principles, and theories, which require supporting citations along with two scholarly peer-reviewed references supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.
Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early and check back often to continue the discussion. Be sure to respond to your peers posts as well.
Readings Required:
Chapter 15 in Foundations of Finance: Working-Capital Management
Chapter 17 in Foundations of Finance: Cash, Receivables, and Inventory Management
Bugshan, A. (2021). Oil price volatility and corporate cash holding. Journal of Commodity Markets. https://doi.org/10.1016/j.jcomm.2021.100237
Recommended:
Chapter 15 PowerPoint slides in Foundations of Finance: Working-Capital Management
Chapter 17 PowerPoint slides in Foundations of Finance: Cash, Receivables, and Inventory Management
Bagais, O. A., & Aljaaidi. K.S. (2021). Financial ratios in energy projects: The case of days sales of inventory. Journal of Project Management, 57?60. https://doi.org/10.5267/j.jpm.2020.9.001
Requirements: 500-1000 | .doc file