“The cash gap refers to the time interval between the date when a company pays cash out for the inventory it purchases and the date it receives cash from customers for the same inventory. Naturally, all companies would like to have customers pay for the goods before the suppliers demand payment for the goods.”Click Here to Begin

Working capital refers to the cash a business requires for day-to-day operations, or, more specifically, for financing the conversion of raw materials into finished goods, which the company sells for payment. Among the most important items of working capital are levels of inventory, accounts receivable and accounts payable. Analysts look at these items for signs of a company’s efficiency and financial strength.Click Here to Begin