There is deterioration in the management of working capital of XYZ Ltd. What does it refer to?
ایکس وائی زیڈ لمیٹڈ کے ورکنگ کیپیٹل کے انتظام میں بگاڑ ہے۔ اس کا کیا حوالہ ہے؟
- That debtors collection period has increased
- That the Capital Employed has reduced
- That Sales has decreased
- That the Profitability has gone up
Explanation
Deterioration in the management of working capital typically refers to the debtors collection period has increased.
This indicates that the company is taking longer to collect payments from its customers.
It affecting its liquidity and working capital management.
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