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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:

what do the terms receivables, turnover and working capital mean?

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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About Scott Aughtmon (1803 Articles)
I’m author of the book 51 Content Marketing Hacks. I am also a regular contributor to ContentMarketingInstitute.com and I am the person behind the popular infographic 21 Types of Content We Crave. I’m a business strategist, consultant, content creation specialist, and speaker. I’ve been studying effective marketing and business methods (both online and offline) since 1999. ===> If you would like to see ways that we could work together, then please click here to learn more.