Receiving payment after 14.22 days while settling with suppliers only after 66.51 days (in 2013). Compare this to Sainsbury's, whose settlement period for trade receivables is 45.07 days in 2013. Their settlement period for trade receivables is however almost 3 times shorter than that of Tesco, this could be due to the percentage of their activity based on immediate transactions over the counter. compared to Tesco. The fundamental goal of any business is to maximize cash flow by receiving payment as soon as possible for goods sold and delaying payment for goods purchased for as long as possible and reasonable. By delaying supplier payments by a further 21 days compared to Sainsbury's, Tesco is effectively benefiting from free finance for a further 3 weeks. They somehow achieve the goal of “generating positive free cash flow.” (This figure may be slightly distorted by the breakdown of trade and other debts in the financial statement. Using the breakdown of figures in the notes gives a much closer figure for both companies.) Tesco, however, has been criticized in recent years for extending payment terms to suppliers, particularly of non-food items. (IBE, 2013) Sainsbury's relatively shorter liquidation period may reflect a more ethical view in terms of treating suppliers fairly, despite some reports to the contrary (IBE, 2013). Unfortunately Sainsbury's is missing out on available free finance and is therefore not fully achieving its strategic objective of maximizing liquidity