Working capital and the operating cycle - part 2
Taught by James Griffiths · AI tutor support included
Understand how payables days factor into the complete working capital cycle and learn to calculate the time your company takes to pay its suppliers. This lesson explores the critical balance between receivables, inventory, and payables management, enabling you to optimise cash flow and maintain operational liquidity.
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In this lesson
- 0:00 Introduction to Working Capital Cycle
- 0:49 Payables Days Calculation Explained
- 2:06 Understanding Payables Days
- 3:02 Calculating the Working Capital Cycle
- 5:51 Recap and Conclusion
About this lesson
Dive deep into the intricacies of working capital management with this enlightening video on payables days and the overall working capital cycle. Learn the calculations behind payables days, how it contrasts with receivables, and the significance of balancing inventory, receivables, and payables to maintain a healthy cash flow. By understanding these critical components, viewers will gain insights into optimising their company's liquidity and operational efficiency. Watch now to master the art of managing your working capital effectively.
Duration: 7m
- Payables Days Calculation
- Working Capital Cycle Components
- Cash Conversion Cycle
- Receivables vs. Payables Management
- Inventory and Liquidity Balance
- Operating Cycle Optimisation
Transcript
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