This indicator also called inventory duration it measures the average days of the overall companys inventory (finished goods, semifinisched goods, raw materials).

It is used for dep liquidity analysis and its value indicates the average days of the companys business cycle to renew inventories. A high number of days may indicate that the company's stocks are almost fixed assets and, or, that the company loses purchaising power on the market. However the number of days to renew inventories cannot provide itself a relevant information unless used with a larger dataset in the industry.

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