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FIN 470 > C3 equations > Flashcards

C3 equations Flashcards

1
Q

Inventory to sales conversion period

A

Average inventories divided by (COGS divided by 365)

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2
Q

Sales to cash conversion period

A

AR divided by (net sales divided by 365)

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3
Q

Purchased to payment conversion period

A

Average DFCL divided by (COGS dived by 365)

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4
Q

Inventory to sales conversion period

A

Average inventory divided by (daily COGS/365)

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FIN 470 (9 decks)

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