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Working Capital: A Summary of Ratios by ...

Lynch, Luann J., G...

Technical Note

Working Capital: A Summary of Ratios by Industry, 2023

Lynch, Luann J.; Guo, Michael

C-2471 | Published December 20, 2023 | 11 pages Technical Note

Collection: Darden School of Business

Product Details

This technical note graphically presents various working capital ratios (days inventory outstanding, days sales outstanding, days payables outstanding, cash conversion cycle, and operating cycle) over the 2016–2022 period by industry and for specific well-known companies. Students are given the opportunity to craft an intuitive “story” around the ratios they are presented.

Develop understanding of working capital ratios Learn to analyze the management of working capital accounts, including inventory, accounts receivable, and accounts payable Gain an awareness of working capital differences across industries