Cash cycle: related pages
Operating cash flow This is the amount of actual cash made by a company’s business.
Working capital The amount of money that a company has tied up in funding its day to day operations.
Current assets ratio Current assets divided by current liabilities.
Creditor days How long, on average a company takes to pay its creditors: ((trade creditors ÷annual purchases) ×365 .
Debtor days (Trade debtors ÷ sales) × 365. The average time debtors take to pay.
Stock turnover Annual sales ÷ stocks; measures how well a company coverts stocks into sales.
Factoring Factoring is a form of financing uses invoiced debtors as a security against which to raise money and outsources the management and collection of this debt.
Copyright Graeme Pietersz © 2005-2019
