DOH = Days of Inventory on hand
= 365/Inventory Turnover
= 365/ (COGS/Avg Inventory)
Perpetual counting system is an inventory cost flow method. Instead of valuin ginventory at year end (under FIFO or LIFO), it is constantly updated.
Cash Conversion cycle is = Days Sales Outstanding + Days inventory on hand - Days of payables
=365/AR Turnover + 365/Inventory Durnover - 365/Payables turnover
= 365/ (sales/avg receivables) + 365/(COGS/avg inventory) - 365/(purchases/avg payables).
Going back to LI, does anyone remember the difference between Cossh conversion and operating cycle? is operating cycle just DSO + DOH?
发表于 2013-4-4 06:45
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