- This topic has 1 reply, 2 voices, and was last updated 12 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Q1-Can Cash Operating Cycle be negative? Q2-What’s the use of “Bank” under “Current Assets” and “Taxation” under “Current Liabilities” in calculating Cash Operating Cycle? Please friendz answer my questions.
1) Yes, but if is it then the business has enormous liquidity problems and is going to collapse It cannot continue trading on that basis for too long.
2) bank and tax are irrelevant for these purposes – the operating cycle is measuring how ling cash is tied up in operations.
(but both are obviously relevant when measuring liquidity in general)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.