Other things equal,it is more desirable to have a larger working capital gap.

Question

Quizplus · Accepted Answer

It is actually more desirable to have a smaller working capital gap. This is because a smaller gap means that the company has less money tied up in inventory, and is therefore more efficient in its use of capital. Additionally, a smaller gap means that the company is less likely to have liquidity problems and can more easily meet its short-term obligations.

Other Things Equal,it Is More Desirable to Have a Larger