A scissors truss supported on two walls. A scissors truss is a kind of truss used primarily in buildings, in which the bottom chord members cross each other, connecting to the angled top chords at a point intermediate on the top chords' length, creating an appearance similar to an opened pair of scissors. scissors truss supported on two walls. A scissors truss is a kind of truss used primarily in buildings, in which the bottom chord members cross each other, connecting to the angled top chords at a point intermediate on the top chords' length, creating an appearance similar to an opened pair of scissors.
Unformatted text preview: d. Daysâ sales in inventory - . The daysâ sales in inventory ratio measures the number of days that inventory is held before the final product is sold. In general, a firm wants to produce a high level of sales per dollar of inventory, that is, it wants to turn inventory over (from raw materials to finished goods to sold goods) as quickly as possible.
Average inventory does not have to be computed on a yearly basis; it may be on a monthly or quarterly, depending on the amount of analysis required to assess the inventory account. Turnover Days in financial modeling. Below is an example of calculating the inventory turnover days in a financial mode. As you can see in the screenshot, the 2015 inventory turnover is 73 days, which is equal to accounts receivable divided by cost of goods sold times 365. Source: CFI financial modeling courses. Importance of Inventory Turnover for a Business