Lower working capital turnover9/24/2023 ![]() Short Term: operational processes (Purchase, Sales, Payments). But it will be managed also by long term driven positions. Managing Working Capital Working Capital is per definition the short term part of a general ledger (see above). About three years before a liquidity crisis the ratio of / increase clearly. If working capital rise faster than the turnover it means that more capital must have been used that is at the end of the day just locked in operational processes.
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