CAT / FIA FFM Syllabus A. Working Capital Management - Inventory days - Notes
Inventory Days
Explanation of Inventory Days:
A financial measure of a company’s performance that gives investors an idea of how long it takes a company to turn its inventory (including goods that are work in progress, if applicable) into sales.
Generally, the lower (shorter) the better, but it is important to note that the average varies from one industry to another.
This measure is one part of the cash conversion cycle, which represents the process of turning raw materials into cash.
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A1. Working capital management cycle
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Syllabus A. Working Capital Management
A1. Working capital management cycle