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Hi again
Sorry sir, I remember that I’ve seen a question somewhere which asks me wheter the longer “trade payable payment period” would increase our ROCE ratio or not?!
And the answer was yes, I think!
I can’t understand the relationship reallyIt would be easier for me to answer if you could provide the exact question!!!
Delaying payment to suppliers would save interest (either because we would not need to borrow as much, or because we would have more money in the bank and would earn interest on it), and therefore it would result in more profit, which leads to a higher ROCE.
(Although this is really more relevant to Paper FM rather than Paper PM)
Thanks dear John
unfortunately, I do not have the exact question but I got what you said :))
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