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Trade Credit
Growth
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Latest Trade Credit - Previous Trade Credit
X 100 |
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Previous Trade Credit |
Benchmark: 10%
The
percentage increase/decrease in the value of credit given by suppliers on the
previous year.
Compare this with stock growth to see if trade credit has grown faster than
stock value. If this is the case, it may be the result of payment terms being
extended or stock being turned over faster (see stockturn).
A fall
suggest pressure (uncertainty) from suppliers or a drop in performance.
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