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You review a company's financial statements and it reveals that its inventory days figure is erratic, ranging from 20 days to 75 days. The company's
You review a company's financial statements and it reveals that its inventory days figure is erratic, ranging from 20 days to 75 days. The company's inventory is not likely to become obsolete and is not perishable. You are aware that its raw material prices can fluctuate significantly. How would you evaluate the pattern in its inventory days?
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