asked 122k views
2 votes
How can I improve "Days of Working Capital" in capsim

asked
User Volkan
by
7.6k points

1 Answer

4 votes

Recall that the recommended period is 30 to 90 days. Be careful not to have too much.

By taking out long-term loans, issuing stock, selling capacity, and making other changes that raise current assets or decrease current obligations, you can boost working capital. By decreasing sales, you also lengthen the days of working capital (if positive).

Retiring bonds, selling stock, investing in capacity and automation, paying dividends, and reducing current assets or current liabilities in various ways all serve to lower working capital. By boosting revenue, you also decrease days of working capital (if positive).

Because you're acquiring a current a ususe (cash) while generating a current liability, current borrowing is a wash. However, it's a useful tool for managing your money as you experiment with the aforementioned factors.

answered
User Darren Coxall
by
8.5k points
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