Working Capital Days shows how many days it takes a company to convert its working capital into income.
Companies that take fewer days to turn working capital into sales revenue are more efficient than companies that take more days to generate the same amount of income.
If the number of working capital days decreases, this may be due to an increase in sales.
Conversely, if the number of working capital days is high or increasing, this may mean that sales are declining or that the company may need more time to collect accounts payable.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
A ballpark figure is a rough estimate of what something might mean in numerical terms when a more precise number is estimated, such as the cost of a product.
The binomial distribution is a probability distribution that generalizes the probability that a value will take on one of two independent values given a set of parameters or assumptions.
Share capital is the number of ordinary and preferred shares that the company has the right to issue and which are accounted for on the balance sheet as part of share capital.
The Central Limit Theorem (CLT) states that the distribution of sample means approaches a normal distribution as the sample size increases, regardless of the distribution of the population.