- This topic has 3 replies, 2 voices, and was last updated 8 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hai,
Im kind of confused on how to calculate the inventory days.
The question goes like this :
Receivable days : 58
Payable days : 45
Inventory turnover : 10 times per annum
NCA days : 38What is the length of the cash operating cycle?
Assuming that there are 365 days in a year (although questions usually tell you how many days to assume in a year) then if the inventory turns over 10 times in a year, it means there is enough inventory to last 365/10 = 36.5 days, which is the inventory days.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘working capital’ is closed to new replies.