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Definitions of terms begining
with the same letter as "Days of raw material ratio"
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Days of raw material ratio (See Chapter 11 of the Vernimmen)
Days of raw material ratio reflects the number of days of purchases the inventory represents, or viewed the other way round, the number of days necessary for raw material on the balance sheet to be consumed. This ratio is obtained by dividing inventory of raw material by daily purchases of raw material (VAT exclusive).
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