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

Find out the portfolio weight, Question You have a portfolio consisting...

Question You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 10.2%. Stock A has an expected return of 12% while stock B is ex

Exchange and inflation rates, The Gujistan dollar until January 1st 2009 wa...

The Gujistan dollar until January 1st 2009 was pegged to the USA dollar. As at 31st December 2008, the official spot rate between the two currencies was G$0.6147 = US$1, while the

Loan carries an annual percentage rate of 4.85 percent, You borrowed $547,0...

You borrowed $547,000 for the purchase of your new home.  This loan carries an annual percentage rate of 4.85 percent. It will be paid off through equal monthly payments including

Chapter , a debit is used to record

a debit is used to record

Quantitative methods, a rural population (given in thousands) is thought to...

a rural population (given in thousands) is thought to decline according to the equation p=15e^(-0.1t). if t=0 at the beginning of 1998. calculate the numbers in the population at t

The variance of the returns on rt inc. stock, Question If the economy b...

Question If the economy booms, RTF, Inc. stock is expected to return 10%. If the economy goes into a recessionary period, then RTF is expected to only return 4%. The probabilit

What do you meant by trade payable days, Q. What do you meant by Trade paya...

Q. What do you meant by Trade payable days? Year-end trade payables/Credit purchases (or cost of sales)x 365 days This is the length of time taken to pay suppliers. Ratio ca

Intercorporate investments, Intercorporate investments: DI has a 25% ...

Intercorporate investments: DI has a 25% interest in a gold mine in the Yukon. They have held this investment for eighteen months. During this time it has not made any mon

What do you meant by equilibrium national income, Question 1: a) What ...

Question 1: a) What do you meant by equilibrium National Income and to what extent is economic growth beneficial to an economy? b) Explain using both diagrams and mathemat

New allocation of his inheritance , Adding a Riskless Cash Fund: Assume now...

Adding a Riskless Cash Fund: Assume now that a riskless cash fund P0 is also available to invest in. The risk free rate is 0.05 for both lending & borrowing. Obtain Pythagoras's ne

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