by Valarmurugan | Dec 27, 2021 | Fundamental Analysis, Stock Markets Terminology
Cash Conversion Cycle Indicates the time taken by the company to convert the inventory into Liquid Cash in hand Formula Cash Conversion Cycle = Days Inventory Outstanding + Days Receivable Outstanding – Days Payable Outstanding Example Company ABC has the Days... by Valarmurugan | Dec 20, 2021 | Fundamental Analysis, Stock Markets Terminology
DPO indicates how many days the company takes to pay the money back to its supplier. In other words, it measures the average time cycle for payments to suppliers/creditors in days. Formula Days Payable Outstanding = ( Average Payable / Cost of Goods Sold ) * 365... by Valarmurugan | Dec 16, 2021 | Fundamental Analysis, Stock Markets Terminology
Account Receivable days indicate how many days it takes to collect the money from customers. Formula Days Sales Outstanding = 365 / Account Receivable turnover ratio Example If the Account Receivable Turnover ratio is 10, then the account receivable days is 36.5 days.... by Valarmurugan | Dec 14, 2021 | Fundamental Analysis, Stock Markets Terminology
Account Receivable Turnover indicates how many times the company is able to collect the money from its customer in the given year. Formula Debtor’s Ratio = Revenue / Average Recievablr Example Company ABC makes Total sales of Rs 100 Cr and the... by Valarmurugan | Dec 9, 2021 | Fundamental Analysis, Stock Markets Terminology
Inventory turnover ratio indicates how many days the company takes to convert the inventory into Sales Formula Inventory days = 365 / Inventory Turnover Example The ITR (Inventory turnover ratio) of the company ABC is 8.2. Then the Inventory days is 44.5...