What do you mean by Working Capital Cycle?

The working capital cycle measures the time between paying for goods supplied to you and the final receipt of cash to you from their sale. It is desirable to keep the cycle as short as possible as it increases the effectiveness of working capital.// The working capital cycle is made up of four core components: > Cash (funds available) > Creditors (accounts payable) > Inventory (stock on hand) > Debtors (accounts payable).

Post a Comment

0 Comments