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.
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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