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Maturity period
Managing Current Liabilities Based on Maturity Periods
December 23, 2023
How does the maturity period of current liabilities affect their management?
The maturity period of current liabilities influences management strategies. Short-term liabilities require immediate attention, impacting cash flow and liquidity. Longer-term current liabilities offer flexibility but may carry higher interest rates. Balancing maturity periods ensures a healthy liability structure, aligning repayment schedules with available cash flow and avoiding liquidity strain.
Tags : Maturity Period , Liability Management , Financial Planning