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Short-term Liquidity- Calculate the following: a) Days Inventory Held (also known as Days Inventory) b) Days Sales Outstanding (also known as Days Receivables) c) Days

Short-term Liquidity- Calculate the following: a) Days Inventory Held (also known as "Days Inventory") b) Days Sales Outstanding (also known as "Days Receivables") c) Days Payable Outstanding (also known as "Days Payable") d) Cash Conversion Cycle (CCC)- make sure to write out the formula and explain what it aims to capture What does each ratio/calculation above aim to highlight or explain? What insights can you deduce from each the ratios? What does the cash conversion cycle tell us? Why is this important for a business ?

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Solution a Days Inventory Held DIH calculates the number of days it takes for a company to sell its inventory ... blur-text-image

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