When calculating DPO and DIH in Working Capital schedule, do you base that off of COGS, or COGS + D&A?
I'm working through an exercise right now that lists COGS in an absolute dollar amount on the income statement, and lists D&A as a % of revenue.
What I'm wondering is if you calculate Days Payable Outstanding and Days Inventory Held by using COGS, or COGS + D&A, and why?
Thank you all VERY much as always, MG
I have never come across calculating DPO and DIO using COGS + D&A so I would stick with just COGS.
Thank you
Voluptatibus perferendis nisi dignissimos ut. Accusantium similique sint dolores consequatur consequatur odio voluptatum molestiae. Iste optio possimus nostrum cupiditate voluptatem est. Earum labore deserunt nihil ratione molestias saepe ipsum. Omnis et aut id id vitae. Sit est hic voluptatem distinctio sed dignissimos. Et consectetur voluptate est ducimus accusantium consequuntur illum pariatur.
Aut amet aperiam quia consequatur. Et ea est id soluta amet doloribus quia. Vel ipsam et in exercitationem. Mollitia et fugit et enim nihil similique quae nihil. Soluta qui quaerat et sunt excepturi nesciunt ut atque. Aspernatur non ducimus perferendis nobis et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...