Business & ManagementIB

The working capital cycle

The working capital cycle...The working capital cycle for a business is the length of time it takes to convert the total net working capital (current assets less current liabilities) into cash. Businesses typically try to manage...
The working capital cycle

Working capital cycle shows the cash flows into and out of the business. As you can see, there are lags between the receipt of the cash and payments made by a business.

The working capital cycle
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