![]() This action will give us a better picture of how efficient a business is. Just like with most indicators and ratios, it’s better to compare the results against other companies of the same type/industry. ![]() The main cause of high days working capital is generally the decreasing cash inflow from sales. Simply put, businesses that require fewer days to convert working capital into sales are more efficient than companies that have a higher measurement. The figure of days working capital effectively tells us about a company’s efficiency. The higher the indicator, the more time it takes for a company to turn working capital into sales in a certain period. ![]() ![]() Days working capital is a liquidity indicator. Days working capital is a measurement that reports the number of days it takes for the working capital to be converted into revenue. ![]()
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