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Regarding overtrading

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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June 21, 2022 at 6:37 am #659049
dennissherpa101
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Sir Why does the working capital days increase especially receivable days in overtrading?
June 21, 2022 at 8:51 am #659056
John Moffat
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It doesn’t automatically happen, but is likely to happen because the company has not prepared from higher sales and so has problems copying with higher sales and so takes longer to collect receivables.
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