What affects the working Capital Cycle?
There are a few things that can affect the working capital cycle. Typically, the three main things are accounts receivable, inventory, and accounts payable. Accounts receivable is the amount of money that is owed to the company by its customers.
Inventory is the raw materials, work in progress, and finished goods that a company has on hand.
Accounts payable is the amount of money that the company owes to its suppliers. The working capital cycle is the time it takes to convert these assets into cash. A shorter working capital cycle means that the company can generate cash more quickly.
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