Differences in working capital for different industries, Financial Management

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Differences in working capital for different industries






High volume.

WIP and finished goods

Goods  for  re-sale  only,

usually low volume

No  or  very  little




High  levels  of  debtors,  as dependant  on  a  few customers

Very  low  levels  as  most

goods bought by cash

Usually  low  levels as services are paid for immediately



Low  to  medium  levels  of Payables

Very  high  levels  of  trade

payables  due  to  the  huge

purchases of inventory

Low  levels  of


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