Differences in working capital for different industries, Financial Econometrics

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Differences in working capital for different industries

 

Manufacturing

Retail

Service

Inventories

High volume of WIPand finished goods.

Goods for re-saleonly and usually lowvolume.

Noneor very littleinventories.

Trade

receivables

High levels of tradereceivables, as they tend be dependent on a few customers.

Very low levels as mostgoods are bought incash.

 

Usually low levels asservices are paid for immediately.

Trade

payables

Low to medium levels of trade payables.

Very high levels of trade payables due tohuge purchases of inventory.

Low levels of payables.


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