working capital cycle for a tradeinventories , Financial Management

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working capital cycle for a tradeinventories

Working capital cycle for a trade

Inventories days (time inventories are held before being sold)

Plus

Trade receivables days (how long the credit customers take to pay)

Minus

Trade payables days (how long the company takes to pay its suppliers)

Equals

Working capital cycle (in days)

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Financial Management: working capital cycle for a tradeinventories

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