Company A is having operating cycle of 15days...b is having
operating cycle of 10 days which company is having better
position
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Answer / sachin agrawal
The better position will depend upon the profit % of the
companies and operating cycle cannot be considered in
isolation. Say A's operating % is 1% and B's is 2% then B
is genrating 2% return in 15 days while A will require 20
days to generate 2% return (2 times of 1o days and 2 times
of 1 %)
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