Modeling A/R, Inventory and A/P
Hey guys, I know that when modeling working capital balances (accounts receivable, inventory and accounts payable), you usually calculate A/R days, etc. and then extrapolate using these drivers.
But if a company has both current and non-current A/R and inventories, do you add them together and then calculate A/R days and inventory days? Or do these days only apply to current A/R and current inventory balances (while keeping non-current A/R and inventory as a fixed % of sales and COGS)?
Thanks much!
Animi voluptatem et non aperiam ad illum asperiores. Inventore qui repellat assumenda quisquam eum eaque dolore quasi. Dignissimos harum ut ex voluptas et a. Incidunt quia mollitia cum ut nulla aut fugiat.
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...