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Inventory holding period
Inventories / cos x365
How many days the company holds inventory.
The lower the better
Trade receivables collection period
Trade receivables / revenue x365
How quick trade bedt is recovered
How many days debtors take to pai theur debts. Good credit control management -tm the lowe the better
Trade payables collection period
Trade payables / cos x365
How many days we take to pay our debts
Neither higher or lower as we need to have good credit control measurements in place
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