- This topic has 4 replies, 2 voices, and was last updated 1 year ago by
.
Viewing 5 posts - 1 through 5 (of 5 total)
- Posts
- Topics: 53
- Replies: 46
- ☆☆
How does delaying payments to suppliers reduce capital employed?
- Topics: 53
- Replies: 46
- ☆☆
is it the current ratio ?
Delaying payments to suppliers can reduce capital employed(CE) because it increases the accounts payable on the balance sheet, which is a current liability. Since capital employed is calculated as total assets minus current liabilities, an increase in accounts payable (due to delayed payments) will result in a decrease in CE
- Topics: 53
- Replies: 46
- ☆☆
total assets minus current liabilities.. that was silly , sry .. thanks
Viewing 5 posts - 1 through 5 (of 5 total)
- You must be logged in to reply to this topic.