{"id":65671,"date":"2026-04-23T12:25:48","date_gmt":"2026-04-23T10:25:48","guid":{"rendered":"https:\/\/fnege-medias.fr\/?post_type=video-acf&#038;p=65671"},"modified":"2026-04-23T12:25:48","modified_gmt":"2026-04-23T10:25:48","slug":"what-is-the-scissors-effect","status":"publish","type":"video-acf","link":"https:\/\/fnege-medias.fr\/en\/fnege-video\/what-is-the-scissors-effect\/","title":{"rendered":"What is the <b>scissors effect<\/b>?"},"content":{"rendered":"<p data-start=\"0\" data-end=\"158\">When a company is growing, the increase in its revenue leads to a rise in its EBITDA, while at the same time increasing its working capital requirement (WCR).<\/p>\n<p data-start=\"160\" data-end=\"273\">If the WCR increases faster than EBITDA, the scissors effect leads to a depletion of the company\u2019s cash reserves.<\/p>\n<p data-start=\"275\" data-end=\"369\">Paradoxically, the faster a company grows, the more exposed it becomes to the scissors effect.<\/p>\n<p data-start=\"371\" data-end=\"470\" data-is-last-node=\"\" data-is-only-node=\"\">However, this effect is predictable and fully measurable using tools such as cash flow forecasting.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a company is growing, the increase in its revenue leads to a rise in its EBITDA, while at the same time increasing its working capital requirement (WCR).<br \/>\nIf the WCR increases faster than EBITDA, the scissors effect leads to a depletion of the company\u2019s cash reserves.<br \/>\nParadoxically, the faster a company grows, the more exposed it becomes to the scissors effect.<br \/>\nHowever, this effect is predictable and fully measurable using tools such as cash flow forecasting.<\/p>\n","protected":false},"featured_media":65672,"template":"","format":[11959],"meta":{"_acf_changed":false},"categories":[3148,3144],"tags":[12177,12178,8777,12179,12176],"class_list":["post-65671","video-acf","type-video-acf","status-publish","has-post-thumbnail","hentry","category-corporate-and-market-finance","category-management-control","tag-ebitda-gross-operating-surplus","tag-gross-cash-flow-cash-surplus-from-operations","tag-management-control-en","tag-wcr","tag-working-capital-requirement","format-management-dictionary"],"acf":[],"_links":{"self":[{"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/video-acf\/65671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/video-acf"}],"about":[{"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/types\/video-acf"}],"version-history":[{"count":1,"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/video-acf\/65671\/revisions"}],"predecessor-version":[{"id":65674,"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/video-acf\/65671\/revisions\/65674"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/media\/65672"}],"wp:attachment":[{"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/media?parent=65671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/categories?post=65671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/tags?post=65671"},{"taxonomy":"format","embeddable":true,"href":"https:\/\/fnege-medias.fr\/en\/wp-json\/wp\/v2\/format?post=65671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}