Do you have an efficient working capital cycle?
A working capital cycle is the amount of time it takes to turn the net current assets and current liabilities into cash. The longer this cycle, the longer a business is tying up capital in its working capital without earning a return on it. It’s important that you evaluate your cash inflows and outflows and ensure that it is as efficient as it could be, otherwise you run the risk of constantly increasing debt to fund cash shortfalls. Here are few tips to help you start the pr