All other things being equal, if a company takes longer to pay its suppliers than before, indicates that suppliers are providing more financing for the company.

Question

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If a company takes longer to pay its suppliers, it means that the company is holding onto cash longer, which may indicate that suppliers are financing the company's operations. Essentially, suppliers are providing the company with a short-term loan by extending payment terms, which can be seen as a form of financing.

All Other Things Being Equal, If a Company Takes Longer