Working Capital Equation (Receivables, Inventory and Payables)
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Working Capital Equation (Receivables, Inventory and Payables)
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Here's a refresher on the concept of working capital. But we don't just cover the concept today, we'll look at the formula and what it means. Specifically:
- Working capital cycle (aka the funding gap) = Receivable Days + Inventory Days - Payable Days
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