Calculate the Days of Inventory (DOI) If Average Inventory Is

question 53

Essay

Calculate the days of inventory (DOI) if average inventory is $100 million (calculated in terms of costs) and the monthly cost of goods sold (COGS) is $85 million.Use 30 days per month.

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Definitions:

Plowing Back

The reinvestment of earnings by a company back into its business rather than distributing them as dividends to shareholders.

Risk-Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted by its market capitalization.

Growth Rate

Growth rate signifies the percentage change of a specific variable within a specific time period, often used to indicate the expansion of a company's revenue or profit.