Days inventory outstanding and Fixed rate bond: Difference between pages

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''Financial ratio analysis - management efficiency ratios.''
A bond paying a fixed nominal coupon.  In other words, not a coupon linked to some index or at a margin above some published reference rate.


(DIO).
Also known as a nominal bond.
 
Days inventory outstanding is a working capital management ratio calculated by dividing inventory outstanding at the end of a time period by the average daily cost of goods sold for the period.
 
For example: a company holds on average £30,000 of stock over a year. It sells £300,000 of goods per annum.
 
The days inventory outstanding are:
 
(30,000 / 300,000) x 365
 
= 36.5 days
 
 
A lower number of days is usually considered desirable, because it is a quick measure of the amount of stock held, although the business must also gauge the amount of stock required to meet customers’ delivery expectations.
 
 
Also known as Inventory days.




== See also ==
== See also ==
* [[Cost of goods sold]]
* [[Fixed income]]
* [[Creditors]]
* [[Fixed rate]]
* [[Days payables outstanding]]
* [[Index linked bond]]
* [[Days sales outstanding]]
* [[Nominal bond]]
* [[Inventory]]
* [[Inventory turnover ratio]]
* [[Management efficiency ratio]]
* [[Operating cycle]]
* [[Payables management]]
* [[Working capital]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_products_and_markets]]

Revision as of 14:49, 1 July 2022

A bond paying a fixed nominal coupon. In other words, not a coupon linked to some index or at a margin above some published reference rate.

Also known as a nominal bond.


See also