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Aggressive vs conservative working capital policy confusion

Asked by a student · 1h ago

Hi all, Quick one on working capital management, when a company switches from a conservative to an aggressive working capital policy, does that mean they hold less inventory and receivables relative to payables, or more? My notes say aggressive = lower levels of current assets, but then I saw a past question where they called a high level of short-term borrowing aggressive aswell. Bit confused, cheers.
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