ITO (Inventory Turnover)

Working Capital Days is built up by three parts: 

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• ITO - Inventory Turnover Days

• DSO - Days Sales Outstanding

• DPO - Days Payables Outstanding 

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Depending on the industry itself a business may not have Inventory, therefore its Working Capital would only include DSO and DPO.  These three KPI’s provide specific insights into various areas of an operation that directly impact cash flow.  

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Working Capital is critically important for all businesses thus improving efficiencies within it is extremely valuable.

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Move the sliders to see the impact of lower versus higher ITO. 

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