Business Deficit is a term that refers to the difference between the maturity of receivables and the recovery time of current liabilities. It indicates the number of days that must be rolled over.
Calculation:
Business deficit = Maturity of Receivables - Recovery Time of Current Liabilities
Use of the Business deficit in practice: In the enterprise it used by CFO in financial analysis to analyze ratios.
Note: A business deficit is a deficit of an enterprise. A trade deficit represents an outlfow of domestic currency to foreign markets.
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