What is overtrading?

Overtrading is a term in financial statement analysis. Overtrading often occurs when companies expand their own operations too quickly.

What is overtrading? Overtrading takes place when a business accepts work and tries to complete it, but finds that fulfilment requires greater resources (ie cash,"Debtors (owing by customers): 37,000"Bank overdraft: 29,000"Net current assets: 3,000"TOTAL ASSETS: 103,000

Overtrading. a situation in which a firm expands its production and sales without making sufficient provision for additional funds to finance the extra WORKING

In simple words, over-trading means, “a situation where a company does more business than what its finances allow. It is related to the cash position of the

Overtrading is the practice of conducting more business than can be supported by a firm's working capital. When this happens, a company

Overtrading refers to the excessive buying and selling of stocks by either a broker or an individual trader. Overtrading, also known as churning, is a prohibited practice under securities law.

The Consequences of Overtrading for Your Business. Overtrading typically occurs when a business grows at a staggering rate. Suddenly, the business requires