Working capital cycle for a trade, Financial Econometrics

Assignment Help:

Working capital cycle for a trade

Inventories days (time inventories are

held before being sold)

 

+

 

Trade receivables days (how long the

credit customers take to pay)

 

-

 

 

Trade payables days (how long the

company takes to pay its suppliers)

 

=

 

 

Working capital cycle (in days)

(Inventories/ cost of sales)x 365 days

 

 

+

 

(Trade receivables / credit sales) x 365 days

 

 

-

 

 

(Trade payables / purchases)x 365 days

 

 

=

 

 

Working capital cycle (in days)

Please note that for "trade payable days" calculation, if information about credit purchases isn't known then cost of sales is used instead.


Related Discussions:- Working capital cycle for a trade

Conservative policy for financing working capital, Q. Conservative policy f...

Q. Conservative policy for financing working capital? A conservative policy for financing working capital is one where short-term finance is usedto fund: A : All of the flu

Cost model and revaluation model , Topic AASB 116 Property, Plant and...

Topic AASB 116 Property, Plant and Equipment allows entities to choose between the cost model and revaluation model for measuring and accounting for non-current assets subseq

Quantitative Finance, I need help on few questions related to quantitative ...

I need help on few questions related to quantitative finance. Could you help me out in those.

#title.health insurance., Ask Sita expects her future earnings to be worth...

Ask Sita expects her future earnings to be worth Rs. 100. If she falls ill, her expected future earning will be Rs. 25. There is a belief that she may fall ill with probability of

Distinguish between debt finance and equity finance, Question 1: (a) A...

Question 1: (a) As a small island economy , Mauritius had to face a number of constraints in order to transform itself from mono-cop economy into a well diversified midd

Determine the time zero value of the swap, You have been provided with the ...

You have been provided with the following information on a fixed-fixed USD-GBP currency swap, thespot exchange rate between USD and GBP, and the USD and GBP yield curves:

How does this activity lead to a market failure, Question 1: a) Faced ...

Question 1: a) Faced with fierce international competition Mauritius should protect its domestic industries, to survive in such an environment. Discuss. b) "The best way

Financial Analyst, What is the relationship between overpopulation and unem...

What is the relationship between overpopulation and unemployment in a country?

the risky efficient frontier, Create a new µσ-plane graph displaying the r...

Create a new µσ-plane graph displaying the risk-less cash fund, tangency portfolio, Pythagoras's new optimal portfolio and the Capital Market Line relative to the risky efficient f

Calculate weighted average cost -determine relevant risk , 1. Apply investm...

1. Apply investment appraisal techniques to project cash flows in different business scenarios and in situations of uncertainty, to arrive at investment decisions and to evaluate t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd