Site map     Home page     Search the site :
Definition of Days’ inventory ratio - Finance dictionary
        

Days’ inventory ratio (See Chapter 11 of the Vernimmen)

Days’ inventory ratio is the overall inventory turnover ratio, not meaningful in an absolute sense, but useful in analysing trends. It is calculated by dividing inventories and work in process by average daily sales (VAT exclusive). If information is available, the turnover ratios should be calculated in days of raw material ratio, days of goods held for resale ratio, days of finished goods inventory ratio, and days of work-in-process ratio.

Days’ inventory ratio (See Chapter 11 of the Vernimmen)

Days’ inventory ratio is the overall inventory turnover ratio, not meaningful in an absolute sense, but useful in analysing trends. It is calculated by dividing inventories and work in process by average daily sales (VAT exclusive). If information is available, the turnover ratios should be calculated in days of raw material ratio, days of goods held for resale ratio, days of finished goods inventory ratio, and days of work-in-process ratio.

See all terms in the dictionary of finance

To know more about it, look at what we have already written on this subject :
             You get more than just a glossary on www.vernimmen.com:
- A monthly newsletter with over 26,000 subscribers
- 610,000 financial data for over 16,000 groups
- A 279-question quiz with answers
- A text book that has sold 70,000 copies
- And all the rest


To find other words in the dictionary of finance, click on the first letter of the word you are looking for:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Definitions of terms begining with the same letter as "Days’ inventory ratio" :

DAC
DCF model
DDM
DPS
DR
Data room
Dated date
Days of finished goods inventory ratio
Days of goods held for resale ratio
Days of raw material ratio
Days of work-in-process ratio
Days purchases outstanding
Days sales outstanding
Days’ inventory ratio
Days’ payables ratio
Days’ receivables ratio
De-rating
Debit
Debt
Debt capital
Debt cycle
Debt financing
Debt securitisation fund
Debt security
Debt service
Debt service
Debt service ratio
Debt warrant
Debtor-friendly bankruptcy process
Decapitalisation
Default risk
Defeasance
Deferred income
Deferred redemption period
Deferred tax assets
Deferred tax assets and liabilities
Deferred tax liabilities
Deferred taxation
Defined benefit plans
Defined contribution plans
Delisting
Delta
Demerger
Depositary receipt, DR
Depreciation
Depreciation and amortisation
Depreciation ratio
Derivative
Differed Acquisition Costs
Dilution - EPS
Dilution - shareholders
Dilution loss
Dilution of control
Dilution profit
Direct finance
Direct method
Direct valuation method
Discontinuing operations
Discount rate
Discounted average life of all the cash flows of a bond
Discounted cash flow model, DCF model
Discounted payback period
Discounting
Discounting factor
Discounting of bills of exchange
Discounting with recourse
Disintermediation
Distribution system
Diversification
Divestiture
Dividend
Dividend discount model, DDM
Dividend per share, DPS
Dividend recapitalisation
Dividend tax credit
Dividend yield
Documentary credit
Domiciliation
Double-entry accounting
Dual Track
Dual class shares
Due diligence
Duration
Dutch auction
Dutch clause

Days’ inventory ratio (See Chapter 11 of the Vernimmen)

Days’ inventory ratio is the overall inventory turnover ratio, not meaningful in an absolute sense, but useful in analysing trends. It is calculated by dividing inventories and work in process by average daily sales (VAT exclusive). If information is available, the turnover ratios should be calculated in days of raw material ratio, days of goods held for resale ratio, days of finished goods inventory ratio, and days of work-in-process ratio.