Struggling to differentiate between inventory turnover and holding period
topcat
Registered Posts: 452
What's the difference as I'm struggling to understand after reading it over and over? If anyone could help would be appreciated :-)
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Comments
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Hi,
Basically there isn't, it uses the same figures but the other way round, if you take the number of days holding period and times it by the turnover figure it will equal 365. I guess it depends on who is using the figures and why, for example a stock controller would possibly be more interested in how long stock is held for but an accountant looking at the companys use of resources would possibly be more interested in the turnover figure?! I wouldn't worry about it too much... xx0 -
Hi Lucy :-) Thanks a lot think I have been over thinking this one0
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Plenty more to be worried about in FS :001_tongue:0
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