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Turning your inventory over faster and your payables slower will add cash to your balance sheet, as will raising capital by selling shares in your company or getting a loan or line of credit. The other option you have involves improving the performance of your accountsreceivable (AR). Email YVCM about Consulting 5.
AccountsReceivable (AR) is among the three largest assets on most companies’ books — inventory along with plant and equipment are the other two. AR is also the primary source of cash to fund daily operations. Nevertheless, DSO remains a popular and widely used metric by analysts.
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