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  • About Us
    • Nick Setchell – RealTime CEO
    • Vistage & TEC WorkshopsNick Setchell has been working with Vistage, the world’s largest CEO organization, since 2001.
    • NewsSee what’s happening with RealTime CEO.
    • Economic Update Report
    • Contact UsReach out to us. If you’re interested in booking Nick to give a keynote address or workshop at your conference, please include the date and location.
  • Concepts
    • Fiscal Focus Financial Statement AnalysisUnlock the hidden numbers in your P&L and balance sheet to see how you’re performing in 11 vital metrics.
    • Should We? / Can We?View, in real time, the actual financial impact of the hundreds of business decisions your team makes every month.
    • 24 Month Rolling ForecastingBlend your trailing twelve months with a rolling 12-month forecast to get a complete financial picture of your business.
    • J Curve ManagementTrack the number of investments you’re undertaking, the 3 phases of each, and the 5 rules for managing them.
    • Return on Operations – ROOView your return on operations percentage — your ROO % — the most powerful number to measure business success.
    • CEO Performance AnalysisBenchmark your performance as a private-company CEO against others in your industry.
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How are Inventory Days calculated?

RTC compares the Inventory balance in the Balance Sheet for the month, to the Materials balance in the Income Statement for the month. If the Inventory balance is equal to the month’s Materials, it calculates it as 30 days.

The amount of Inventory over the Material balance for that month is then compared to prior months Materials and calculated as a portion of days.

Example:

Inventory as at Jun 21 $1,300,000
Materials for Jun 21 $600,000 (30 days)
Inventory Balance $700,000 ($1,300,000-$600,000)
Materials for May 21 $550,000 (+30 days)
Inventory Balance $150,000 ($700,000-$550,000)
Materials Apr 21 $500,000 ($150,000/$500,000 x 30 days = +9 days)

Total Inventory days are 30 + 30 + 9 = 69



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