Struggling to differentiate between inventory turnover and holding period

topcat

What's the difference as I'm struggling to understand after reading it over and over? If anyone could help would be appreciated :-)

Lucy_M

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... xx

topcat

Hi Lucy :-) Thanks a lot think I have been over thinking this one

Lucy_M

Plenty more to be worried about in FS :001_tongue:

topcat

Lucy_M wrote: »

Plenty more to be worried about in FS :001_tongue:

Haha blooming tell me about it, enough to worry about for a very long time Considering eating the book to see if it stays in that way, with a knife and fork (have to be civil about it)