Business 101: What Do The Terms Receivables, Turnover, And Working Capital Mean?

There are some basics about business that most business owners are afraid to admit that they really don’t know or understand.

Well, here at 2BH we’re going to give you the answers to the questions you might have been too embarrassed to ask.

Here are the terms for today:

Turnover is the frequency in which inventory sells, or “turns over,” during a given year.

Receivables are the amounts that any clients or customers owe you for your products or services that you’ve provided to them.

Working capital is the money that is needed in order to operate your business on a day-to-day basis. It is usually calculated from the difference between your current assets and your current liabilities.

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