C3 equations Flashcards
1
Q
Inventory to sales conversion period
A
Average inventories divided by daily cost of good sold COGS divided by 365
2
Q
Sales to cash conversion period
A
Average accounts receivable capital a capital R divided by daily sales (net sales divided by 365)
3
Q
Purchased the payment conversion period
A
(average) AP + (average) accrued liabilities divided by daily COGS (COGS/365)
4
Q
Inventory to sales conversion period
A
Average inventory divided by daily cost of goods sold (COGS/365)