In general, financing saving is the difference between current and revised receivable balance@interest rate, but this question is overdraft @interest rate . I just wonder the reason desperately.
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working capital June 2013 Q3 a
10y ago#1The reason it is usually just the change in receivables is because if only receivables get smaller than the overdraft will reduce by the same amount.
Here it is not just receivables that are changing but inventories and payables as well.
As a result the overdraft changes because of all of them and the interest is always on the change in the overdraft.
Thanks, you helped me a lot. :)
10y ago#3You are welcome :-)
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