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What is Working Capital Cycle Explained about?

The working capital cycle refers to the length of time between a company paying for materials and receiving cash from sales. It includes the time materials spend in production, time finished goods spend in inventory, and time until payment is received from customers. To calculate the total working capital cycle, you add the number of days for each stage and subtract any supplier credit days. Understanding the working capital cycle helps forecast, control, and manage working capital needs, as it indicates th

Author

Manish Kumar Masram

Language

EN