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Cash operation cycle??

CCused6y ago
How an increase in the cash operating cycle will decrease profitability?
John MoffatJohn MoffatTutor6y ago#1
Because an increase in the cycle will occur because of such things as taking longer to collect receivables and holding more inventories. Both of these will increase interest costs (because either they will be borrowing money to finance the increase and paying interest, or because money will be tied up that could otherwise have been earning interest).
CCused6y ago#2
Thank you very much sir you are great
John MoffatJohn MoffatTutor6y ago#3
You are welcome :-)
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