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Overtrading

This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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September 5, 2016 at 1:10 pm #337889
Anuja Nair
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Hi sir, let’s say for example a company is overtrading , the inventory holding could either increase or decrease right ?

If it increases: Could be because the firm is overbuying or intentionally building up inventory in anticipation of futher sales growth.

If it decreases: Means the inventory is selling fast. This could be as a result of poor planning by the management team.

Am i right to say this ?
September 5, 2016 at 3:41 pm #337926
John Moffat
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What you have written is fine 🙂
September 7, 2016 at 2:10 am #338457
Anuja Nair
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Thank you sir.
September 7, 2016 at 6:22 am #338478
John Moffat
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You are welcome 🙂
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