Question

Why fmcg companies operate on negative working capital?

Answer 1

$<marquee> Ram Ram Ji☺️</marquee>$

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★ Several FMCG companies have a high negative working capital.

★ This may be because their strong brand loyalty helps them maintain a low inventory as well as generate speedy sales.

★ The products are sold to the customers and the cash generated even before the company pays its suppliers.

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