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level of investment in current assets

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › level of investment in current assets

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 4, 2018 at 12:48 pm #476377
    Avatarchughtai20
    Participant
    • Topics: 39
    • Replies: 52
    • ☆☆

    Hello !
    I have read that the more aggressive approach would be more profitable because of the lower level of investment in current assets. But how can a company be more profitable if it has lower levels of receivables and inventory ?

    October 4, 2018 at 4:36 pm #476404
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    Because (as I explain in my free lectures) they will need less capital borrowing to finance the net current assets and would therefore be paying less interest.

    Have you watched my lectures? They are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.

    October 5, 2018 at 6:36 am #476517
    Avatarchughtai20
    Participant
    • Topics: 39
    • Replies: 52
    • ☆☆

    Yes, I have. So far open tuition has helped pass 3 of my exams for which I’m very grateful. Clearly, I need to be much more focused while learning F9. Thank you !

    October 5, 2018 at 3:45 pm #476537
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘level of investment in current assets’ is closed to new replies.

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