Inventory days, Financial Econometrics

Assignment Help:

(Average inventory/Cost of sales) * 365 days

Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2

- (Opening inventories + closing inventories) / 2.

This ratio demonstrates how long the inventory stays in the company before it is sold. The lower the ratio the more efficient the company is trading though this may result in low levels of inventories to meet demand. A lengthening inventory period may indicate a slowdown in trade and an excessive build-up of inventories, resulting in additional costs.


Related Discussions:- Inventory days

standard deviation of a portfolio and probability, Question What is th...

Question What is the standard deviation of a portfolio which is comprised of $4,500 invested in stock S and $3,000 in stock T?

Theories of interest rate determination, Question 1: (a) Describe clear...

Question 1: (a) Describe clearly the main theories of interest rate determination. (b) Critically assess the relationship between interest rate and Money supply. Questio

Financial research, why is research important in the feild of finance

why is research important in the feild of finance

Marketing pricing, Could you please explain me how to determine the marketi...

Could you please explain me how to determine the marketing pricing of a industril products? For explam a component in air conditioning. No standard parts in marketing.

Calculate correlation coefficient, Question The variance of Stock A is ...

Question The variance of Stock A is .004, the variance of the market is .007 and the covariance between the two is .0026. What is the correlation coefficient?

Prepare the consolidated statement, Power is a listed group reporting under...

Power is a listed group reporting under IFRS. The group was established when Power purchased an 80% of the ordinary share capital of Shuttle, a listed company, on 1 January 2009 fo

Financing, Financing Throughout the life of this Company, Dwight is p...

Financing Throughout the life of this Company, Dwight is proud of the fact that he has never before required any outside financing--other than his line of credit. The line of

How does this activity lead to a market failure, Question 1: a) Faced ...

Question 1: a) Faced with fierce international competition Mauritius should protect its domestic industries, to survive in such an environment. Discuss. b) "The best way

What do you meant by overtrading, Q. What do you meant by Overtrading? ...

Q. What do you meant by Overtrading? When a company is trading large volumes of sales very quickly, it may also be generating large amounts of credit sales and consequently lar

Expected Experience Ratio, How do Insurance companies calculate the Expecte...

How do Insurance companies calculate the Expected Experience Ratio

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd