With this, we can see that although their negative working capital, they can meet their
short-term payment commitments due to their positive cash cycle figures which represents
the margin the firm has (in days) to clear their payment obligations. This situation is also
caused by the fact that the fabrication process of Nestlé is usually short, as food has to be
quickly consumed. Therefore, we can consider that the firm develops more commercial
activities than production processes.
The causes of this shifting between a positive solvency and a negative one can be explained
through the sales.