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Patrick McKenzie@patio11• about 1 year ago
If I had a dollar and could sell it for $1.03, and that required warehousing the dollar for a year, I’d want to shut down this process when the Treasury rate was above 3%. If OTOH I could do that every day, I’d want to do it every day. https://t.co/oJq9HJm91H
Patrick McKenzie@patio11• about 1 year ago
Replying to @patio11
So their turnover ratio, which you can trivially math out of a quarterly report/etc, fluctuates around 8.8. Divide a year by that; ~6 weeks. (This ratio: inventory balance sheet divided by COGS, which has the effect of measuring flow rate through inventory.)