What does WCD mean in ACCOUNTING
Working Capital Days (WCD) is an important measure of a company's financial health. It is calculated by dividing the current liabilities of a business by its daily revenue. WCD measures the number of days it takes a company to turn working capital into cash, and this number is an important indicator of how efficiently a company operates and how quickly it can pay its debts.
WCD meaning in Accounting in Business
WCD mostly used in an acronym Accounting in Category Business that means Working Capital Days
Shorthand: WCD,
Full Form: Working Capital Days
For more information of "Working Capital Days", see the section below.
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Essential Questions and Answers on Working Capital Days in "BUSINESS»ACCOUNTING"
What does WCD stand for?
WCD stands for Working Capital Days.
How is Working Capital Days calculated?
Working Capital Days is calculated by dividing the current liabilities of a business by its daily revenue.
Why is Working Capital Days important?
Working Capital Days measures the number of days it takes a company to turn working capital into cash, and this number is an important indicator of how efficiently a company operates and how quickly it can pay its debts.
What factors affect the calculation of Working Capital Days?
Factors that affect the calculation of Working Capital Days include total current assets, total current liabilities, sales volume, prices and expenses.
Are there any industry benchmarks for Working Capital Days?
Yes, there are benchmarks for different industries depending on their size and economic conditions. Generally speaking, companies with low WCD ratios are considered more efficient than those with higher ratios.
Final Words:
Knowing your WCD ratio can help you assess your business's financial health and make better decisions going forward. It provides valuable information about the efficiency of your operations as well as your ability to pay off debt in a timely manner.
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