Shortening the cycle reduces working capital needs and financing costs. Extending supplier terms, optimising inventory and disciplined collections are the main levers.
Source: Finansal analiz uygulaması
Related terms
Working capitalThe difference between current assets and current liabilities; in practice usually used as net working capital, consisting mainly of trade receivables, inventories and trade payables.Trade receivables and payablesAmounts receivable from the sale of goods or services, and amounts payable for purchases of goods or services, in the entity's ordinary course of business.Supply chain financeA financing method using the buyer's credit standing, in which a financial institution pays the supplier early for invoices approved by the buyer.BetaA coefficient measuring the sensitivity of a share's return to changes in the market return, that is, its systematic risk.Break-even pointThe sales volume or amount at which total revenue equals total cost and the business makes neither profit nor loss.Capital asset pricing model (CAPM)A model that calculates the cost of equity from the risk-free rate, beta and the market risk premium.
Last updated: November 8, 2026 · This definition is for general information only.