Explain the role of ‘Operational efficiency’ in the determination of working capital requirement.

4 years ago
Financial Management

The firm with a better operational efficiency has to invest less in working capital because-

  1. they convert raw materials quickly into finished goods, and sell them at their i.e. converts stock into sales quickly.
  2. Promptly collects debts from debtors and bills
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Sanisha Maharjan
Sanisha Maharjan
Jan 16, 2022
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