Finance / July 18, 2018 / Hanna Hunt
The days sales in inventory calculation, also called days inventory outstanding or simply days in inventory, measures the number of days it will take a company to sell all of its inventory. In other words, the days sales in inventory ratio shows how many days a company’s current stock of inventory will last.
Fixed costs are those costs incurred by a company which are unrelated to fluctuations in productivity or sales. Examples of fixed costs include insurance premiums and leases on property. Fixed costs should not be confused with variable costs, which do fluctuate in direct proportion to productivity levels.
Fixed assets are also known as Infrastructure Assets, which can include road signs, bridges, tunnels, water and sewer systems, dams and lighting systems, land, buildings, equipment and machinery. Fixed assets differ from moveable assets in that fixed assets are fixed in place, typically attached or connected to a building, while moveable assets are not. Fixed assets are not inventory or items available for resale, but are company property often used in the course of conducting business.
In a company, debt finance can take a number of forms. For example, money can be borrowed from a bank as a term loan, or money can be borrowed from investors, in the form of debentures.
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