Inventory days
AccountingHow long stock sits before being sold, measured against cost of goods sold.
In plain terms
Cash parked in a warehouse earning nothing. Building faster than sales is a warning.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Cash conversion cycle
AccountingInventory days plus receivable days minus payable days.
In plain terms
A lengthening cycle is often the first quantitative sign that business quality is slipping.