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Definitions of terms begining
with the same letter as "Operating working capital"
:
Operating working capital (See Chapter 4 of the Vernimmen)
Operating working capital is made of: Inventories + Trade receivables - Trade payables. Only the normal amount of operating sources of funds is included in calculations of operating working capital. Unusually long payment periods granted by suppliers should not be included as a component of normal operating working capital. Inventories of raw materials and goods for resale should be included only at their normal amount.
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